Purbaya: Mining Royalty Rates for Coal etc. to Apply in June
Finance Minister Purbaya Yudhi Sadewa stated that regulations adjusting royalty rates for mining commodities such as coal and nickel will apply from early June 2026. Discussions on the policy have reached the final stage.
The royalty rate adjustments have been discussed with President Prabowo Subianto, with only the release of the Government Regulation (PP) pending. “The discussions are complete, and the PP has been submitted. It may start applying from early June,” Purbaya said during a media briefing at his office on Monday, 11 May 2026.
However, implementation depends on how long the PP processing takes. The State Treasurer did not detail which commodities will undergo royalty rate adjustments. Based on previous discussions between Purbaya and Energy and Mineral Resources Minister (ESDM) Bahlil Lahadalia, it is likely to apply to nearly all mining commodities.
“Across the board, Mr Bahlil said when I met him yesterday. All mining goods. But we’ll see the details once the PP is issued,” Purbaya stated. In addition to adjusting royalty rates, the government will also implement new regulations on export duties for mineral and coal commodities (minerba).
Plans to collect additional non-tax state revenues (PNBP), impose export duties, and adjust royalty rates were previously revealed by Purbaya in early April. These policies are intended to capture additional windfall taxes amid rising global commodity prices.
Separately, Energy and Mineral Resources Minister Bahlil Lahadalia revealed plans to delay the implementation of mining royalties. “After hearing input from the public and business friends, I will pending this to build a good formulation that is mutually beneficial,” Bahlil said at the Ministry of Energy and Mineral Resources office in Jakarta on Monday, 11 April 2026, as quoted from Antara.
The new formulation regarding mining royalties, he said, will be pursued to benefit both the state and businesses. Bahlil conveyed that the public hearing on 8 May 2026 regarding proposed changes to royalty rates for copper, tin, nickel, gold, and silver commodities was a socialisation and not yet a decision.
“(The June target) we are still considering. Even if we have to find an ideal formulation that does not harm businesses but also optimises state revenues,” Bahlil stated.