Mining Profit Sharing Scheme to Mirror Oil and Gas System, Here's the Objective
The Ministry of Energy and Mineral Resources (ESDM) is currently discussing plans to apply the oil and gas profit-sharing scheme to the mining sector. However, the study is still undergoing internal government deliberations.
Deputy Minister of ESDM, Yuliost Tanjung, explained that the evaluation covers various technical and financial aspects related to the government’s future strategic targets. One of the primary objectives of adopting this scheme is to provide legal and business certainty for entrepreneurs.
“It is still under discussion. It will be reviewed by the Directorate General of Mineral and Coal (Minerba). This is based on technical and economic studies, while also considering state revenue,” he stated when met at the Ministry of ESDM Office in Jakarta on Friday (5/6/2026).
The government considers this adjustment to the profit-sharing system essential to accelerate the security of national natural resources. Integrated regulations are expected to create a more stable and competitive investment climate for mining industry players in the future.
“Looking at our targets, we are certainly accelerating the security of resources, and there must be legal and business certainty for business actors,” he added.
The proposed adjustment to the profit-sharing scheme includes an evaluation of the proposed distribution proportions, with one of the discussed issues being a 70:30 split scheme. The government emphasised that any regulatory changes must have a strong foundation to create a more stable business climate in the future.
The government ensured that the process of transforming the mining profit-sharing system will not be decided unilaterally. Yuliot emphasised that the results of the in-depth study will eventually be brought to a higher level to reach a final agreement.
“This will be discussed in the cabinet meeting. Therefore, the final decision will be made by the cabinet meeting,” he concluded.
Previously, the Director General of Mineral and Coal (Dirjen Minerba) at the Ministry of ESDM, Tri Winarno, also responded to rumours circulating that the gross split scheme might be around 70:30. Although not explicitly detailed, the government is evaluating all possible schemes that may be implemented.
“The evaluation covers all possibilities. It is not limited only to that (70:30); it is not specific to just that,” he said when met at the DPR RI Building on Thursday (4/6/2026).
Nevertheless, there has been no final decision regarding the plan as of yet. Tri explained that his office is continuing to evaluate mining governance, including Mining Business Licences (IUP) and other related matters.
“What is clear is that regarding IUP and so on, we will evaluate them. Essentially, we are checking whether the state’s share of revenue is in accordance with Article 33 [of the Constitution], or something to that effect,” he concluded.