Nickel Royalty Adjustment Could Boost State Revenue by Rp35 Trillion: Bahlil

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has revealed that the policy of adjusting royalties for a number of mineral and coal commodities has the potential to increase state revenue by Rp30 trillion to Rp35 trillion per year. According to him, the government has raised royalty rates for several commodities, including nickel, coal, and other minerals. This was done as a measure to strengthen state revenue from the ESDM sector. “Royalties have been raised. Nickel has been raised, coal royalties have been raised,” Bahlil said at the CNBC Indonesia Energy Forum in Jakarta on Thursday (25/6/2026). Bahlil explained that the additional revenue is part of the government’s strategy to maintain energy subsidies without having to increase the price of subsidised fuel oil (BBM). Bahlil detailed that when the Indonesian Crude Price (ICP) is at US$70 per barrel, state revenue from the oil and gas sector reaches around US$10.8 billion. However, if the ICP rises to US$100 per barrel, state revenue increases to around US$17.6 billion. Assuming an exchange rate of Rp17,500 per US dollar, the additional revenue is equivalent to around Rp120 trillion to Rp130 trillion. “US$7 billion multiplied by Rp17,500, the average assumption at that time was around Rp120 to Rp130 trillion. I don’t want to mention exact figures, so it’s around that amount. That means we already have 50 per cent of the total needed to cover the additional subsidies,” he said. In addition to utilising the increased revenue from the rise in ICP, the government subsequently raised mineral and coal royalties. The remainder was achieved through various efficiency measures in other sectors. “After that, I didn’t run out of ideas; I racked my brains again and raised the royalties for nickel, coal, and other commodities. That yielded an additional Rp30 to Rp35 trillion. So the total is now Rp160 trillion from the ESDM sector to cover the additional subsidies resulting from not increasing fuel prices,” Bahlil stated.