Indonesian Political, Business & Finance News

Royalty and Export Duty Changes Postponed, ESDM: To Maintain Business Climate

| Source: CNBC Translated from Indonesian | Regulation
Royalty and Export Duty Changes Postponed, ESDM: To Maintain Business Climate
Image: CNBC

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) has confirmed that changes to the increase in royalty rates and the application of export duties (BK) in the mining sector have been decided to be postponed. This comes particularly after Energy and Mineral Resources Minister Bahlil Lahadalia met with Finance Minister Purbaya Yudhi Sadewa at the Ministry of ESDM.

Spokesperson for the Ministry of ESDM, Dwi Anggia, stated that the agreement between the two ministers was made to listen to the aspirations of business actors and to conduct further studies.

“Thus, this will ultimately be positive for everyone. It will be good for state revenues and also good for the business climate,” said Anggia when met at the Ministry of ESDM on Wednesday (13/5/2026).

Furthermore, Anggia said that with this decision, the target implementation of the royalty policy, which was previously planned for June, is certain not to proceed as scheduled.

“So if in the media there is anything contrasting these statements, it’s not true. It has been clarified by Mr Purbaya yesterday. After that, he communicated and we had a meeting,” she said.

Previously, Energy and Mineral Resources Minister Bahlil Lahadalia assured that the proposal to increase royalty rates for mineral commodities, including gold, copper, nickel, and tin, is still at the public testing stage. Thus, it has not yet become a final government decision.

Bahlil acknowledged that in recent days, his side had indeed conducted exercises and socialisation regarding the planned royalty rate changes. This was done to gather input from business actors before official regulations are issued.

“So, I want to say that a few days ago, the team conducted exercises. The mandate of the law is that every regulation we make begins with exercises and socialisation to obtain feedback from actors,” he said when met at the Ministry of ESDM office on Monday (11/5/2026).

Bahlil then revealed that the government has received various responses from entrepreneurs and the public regarding the plan. Therefore, Bahlil will re-evaluate the policy formulation so as not to burden business actors.

“When there are responses that may not be quite right or do not need to be weighed with a new formulation, yes, as the ESDM Minister, I will conduct that evaluation. And that is not yet a decision. Once again, I say that what was socialised is not a decision,” said Bahlil.

He also assured that the government will postpone further discussions to find a formulation deemed more appropriate for all parties. This also answers whether this regulation will be implemented in June.

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