Royalties for Gold, Copper, Nickel and Others to Be Revised, Businesspeople Speak Out!
The Ministry of Energy and Mineral Resources (ESDM) is drafting revisions to Government Regulation (PP) No. 19 of 2025 on the Types and Rates of Non-Tax State Revenues Applicable to the Ministry of ESDM.
The materials under discussion indicate that the regulation will establish adjustments to royalty rates for various mining commodities such as copper, gold, silver, nickel ore, and tin.
Executive Director of the Indonesian Mining Association (IMA), Sari Esayanti, stated that increases in royalty rates must be considered carefully. This policy is seen as impacting the financial obligations’ stability of mining business actors.
“Especially amid global dynamics and the increasing need for investment to support operational sustainability, including downstreaming,” explained Sari to CNBC Indonesia on Monday (11/5/2026).
She hopes that royalty rate increases should go hand-in-hand with a deep understanding of the conditions faced by companies, including policy adjustments related to Domestic Market Obligation (DMO), Export Duty, Harga Patokan Mineral (HPM), implementation of B50, and others that further burden mining companies’ operations.
“Policy certainty and consistency are important factors in maintaining the competitiveness of Indonesia’s mining industry. Frequent policy changes can increase uncertainty for business actors, thus affecting investment risk perceptions in the mining sector,” emphasised Sari.
This situation, added Sari, also has the potential to lower investor and financial institution confidence in supporting long-term financing for the development of the national mining industry.
As is known, the Ministry of ESDM held a public consultation (public hearing) on Friday, 8 May 2026. The meeting discussed the revision of Government Regulation (PP) No. 19 of 2025 on the Types and Rates of Non-Tax State Revenues Applicable to the Ministry of ESDM.
In the document received by CNBC Indonesia, it is stated that the background for the planned changes is the government’s view of potential windfall profits due to rises in prices of several commodities, such as gold, copper, silver, tin, and nickel.
The government also sees the addition and adjustment of rates for several commodities by considering price developments and products both nationally and globally.
In addition, there has been a study by the Corruption Eradication Commission (KPK) on the imposition of royalties on Economically Valuable/Precious Associated Minerals. Finally, another reason is the leadership’s directive to optimise state revenues.
Proposed Rates
Copper
Proposed royalty rates for copper concentrate applied to products of PT AMNT
Copper HMA <7,000 US$/dmt increased to 9% from previous 7%
Copper HMA 7,000 to <10,000 US$/dmt increased to 11% from previous 7.5%
Copper HMA 10,000 to <13,000 US$/dmt increased to 12% from previous 8%
Copper HMA ≥13,000 US$/dmt increased to 13% from previous 10%
Proposed royalty rates for copper cathode applied to products of PT AMNT
Copper HMA <7,000 US$/dmt increased to 7% from previous 4%
Copper HMA 7,000 to <10,000 US$/dmt increased to 8% from previous 5%
Copper HMA 10,000 to <13,000 US$/dmt increased to 9% from previous 6%
Copper HMA ≥13,000 US$/dmt increased to 10% from previous 7%
Gold
Proposed Gold Royalty Rates involving adjustment of intervals and rates from HMA 2,500 US/oztothehighestinterval ≥ 5, 000US/oz, to accommodate price surges.
Gold HMA <2,500 US/troyouncesubjectto14/troy ounce rate of 7%
Gold HMA 2,500 to <3,000 US/troyouncesubjectto15/troy ounce rate of 10%
Gold HMA 3,000 to <3,500 US/troyouncesubjectto16/troy ounce rate of 11%
Gold HMA 3,500 to <4,000 US/troyouncesubjectto17/troy ounce rate of 12%
Gold HMA 4,000 to <4,500 US/troyouncesubjectto18/troy ounce rate of 14%
Gold HMA 4,500 to <5,000 US/troyouncesubjectto19/troy ounce rate of 15%
Gold HMA ≥5,000 US/troyouncesubjectto20/troy ounce rate of 16%
Silver
Proposed Silver Royalty Rates involving a change from the previous flat 5% rate to a progressive rate from the lowest interval HMA <60 US$/oz to accommodate price increases.
Silver HMA <60 US$/oz subject to 5% rate
Silver HMA 60 to <80 US$/oz subject to 6% rate
Silver HMA 80 to <100 US$/oz subject to 7% rate
Silver HMA ≥100 US$/oz subject to 8% rate
Nickel Ore
Nickel HMA <16,000 US/tonincreasedto14/ton rate of 14%
Nickel HMA 16,000 to <18,000 US/tonincreasedto15/ton rate of 15%
Nickel HMA 18,000 to <20,000 US/tonincreasedto16/ton rate of 16%
Nickel HMA 20,000 to <22,000 US/tonincreasedto17/ton rate of 18%
Nickel HMA 22,000 to <26,000 US/tonincreasedto18/ton rate of 19%
Nickel HMA ≥26,000 US$/ton to 19%
Tin
Proposed Tin Royalty Rates involving adjustment (intervals) and rates from HMA 20,000 USD/ton to interval ≥50,000 USD/ton to accommodate price increases.
Tin HMA <20,000 US$/ton increased to 5% from previous 3%
Tin HMA 20,000 to <30,000 US$/ton increased to 7.5% from previous 5%
Tin HMA 30,000 to <35,000 US$/ton increased to 10% from previous 7.5%
Tin HMA 35,000 to <40,000 US$/ton increased to 12% from previous 10%
Tin HMA 40,000 to <45,000 US$/ton rate of 15%
Tin HMA 45,000 to <50,000 US$/ton