Indonesian Political, Business & Finance News

Moment When Purbaya Received a Call from Bahlil as New Mining Royalty Rates Are Postponed

| Source: CNBC Translated from Indonesian | Regulation
Moment When Purbaya Received a Call from Bahlil as New Mining Royalty Rates Are Postponed
Image: CNBC

Jakarta, CNBC Indonesia - Changes to the policy on royalties for mineral commodities occurred rapidly yesterday. Initially planned to increase from June 2026, it was suddenly postponed.

Finance Minister Purbaya Yudhi Sadewa admitted that he learned of the change just two hours after he had told the public that the royalty increase policy for coal and nickel commodities would take effect in June, in line with the implementation of the export duty.

“It turns out there was a change after I spoke yesterday. The change didn’t take long after I spoke; one or two hours later there was a change,” said Purbaya at his office in Jakarta on Tuesday (12/5/2026).

Purbaya said he was also directly called by the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia regarding this cancellation. He said he was ready to adjust to Bahlil’s decision.

“Pak Bahlil called me, so we’ll follow it,” Purbaya emphasised.

Purbaya stressed that the postponement of the new royalty rates for mining mineral commodities has no time limit yet. He assured that he would propose other policies that could compensate for the royalty rate increase, but could not yet disclose them to the public.

“We’ll just follow whatever Pak Bahlil decides later. But there will be changes that, even without that (royalty rate increase), our revenue will still increase. That’s the important thing for me,” he said.

Previously, the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia explained the government’s reasons for postponing the plan to implement the royalty rate increase for mineral commodities, including gold, copper, nickel, and tin.

According to Bahlil, the material that had been socialised by the ESDM Ministry team some time ago was still limited to an initial concept and had not yet become part of a Government Regulation (PP).

“Once again, I say that what was socialised is not a decision, but it’s just, so to speak, a public test. There are inputs and such. Well, if the inputs are not good, we will immediately revise it. And once again, I say that it is not yet a regulation because that will become a PP. The PP doesn’t exist yet,” Bahlil said when met at the ESDM Ministry office on Monday (11/5/2026).

He also assured that his side would not rush to implement the regulation before a more in-depth study was conducted and a formulation was produced that benefits all parties, both the state and business actors.

“So, I think I will pending this to build a good formulation, one that is mutually beneficial. The state benefits and the entrepreneurs must also benefit,” said Bahlil.

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