Royalty Rates for Gold, Copper, Tin-Nickel to Be Revised, Here is the Leak
The government, through the Ministry of Energy and Mineral Resources (ESDM), is finalising plans to adjust royalty rates for several mineral commodities. The adjustment aims to increase state revenues.
The Ministry of ESDM held a public consultation on Friday, 8 May 2026. The meeting discussed the revision of Government Regulation (PP) Number 19 of 2025 on the Types and Rates of Non-Tax State Revenue Applicable to the Ministry of ESDM.
The material discussed includes that the revision will set adjustments to royalty rates for various mining commodities such as copper, gold, silver, nickel ore, and tin.
The policy to be taken also adjusts the cobalt commodity cluster as a by-product of nickel matte, adjusts the cluster for zinc concentrate and lead concentrate, adds types and royalty rates for iron commodities, adds types and royalty rates for cobalt as a by-product mineral in processing and/or refining products other than nickel commodities, and adds types and fixed royalty rates for non-metallic minerals and rocks located more than 12 nautical miles offshore.
In the document received by CNBC Indonesia, it is stated that the background for the planned changes is that the government sees potential windfall profits due to increases in some commodity prices, such as gold, copper, silver, tin, and nickel.
Here are the details:
Copper
Proposed royalty rate for copper concentrate applied to PT AMNT products
Copper HMA <7,000 US$/dmt increases to 9% from previous 7%
Copper HMA 7,000 to <10,000 US$/dmt increases to 11% from previous 7.5%
Copper HMA 10,000 to <13,000 US$/dmt increases to 12% from previous 8%
Copper HMA ≥13,000 US$/dmt increases to 13% from previous 10%
Proposed royalty rate for copper cathode applied to PT AMNT concentrate products
Copper HMA <7,000 US$/dmt increases to 7% from previous 4%
Copper HMA 7,000 to <10,000 US$/dmt increases to 8% from previous 5%
Copper HMA 10,000 to <13,000 US$/dmt increases to 9% from previous 6%
Copper HMA ≥13,000 US$/dmt increases to 10% from previous 7%
Gold
Proposed Gold Royalty Rate involves adjusting intervals and rates from HMA 2,500 US/toztothehighestinterval ≥ 5, 000US/toz, 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 Rate involves changing from a previous flat 5% rate to a progressive rate from the lowest interval HMA < 60 US$/toz to accommodate price increases.
Silver HMA <60 US$/toz subject to 5% rate
Silver HMA 60 to <80 US$/toz subject to 6% rate
Silver HMA 80 to <100 US$/toz subject to 7% rate
Silver HMA ≥100 US$/toz subject to 8% rate
Nickel Ore
Nickel HMA <16,000 US/tonincreasesto14/ton rate of 14%
Nickel HMA 16,000 to <18,000 US/tonincreasesto15/ton rate of 15%
Nickel HMA 18,000 to <20,000 US/tonincreasesto16/ton rate of 16%
Nickel HMA 20,000 to <22,000 US/tonincreasesto17/ton rate of 18%
Nickel HMA 22,000 to <26,000 US/tonincreasesto18/ton rate of 19%
Nickel HMA ≥26,000 US$/ton to 19%
Tin
Proposed Tin Royalty Rate involves adjusting (intervals) and rates from HMA 20,000 US/tontointerval ≥ 50, 000US/ton to accommodate price increases.
Tin HMA <20,000 US$/ton increases to 5% from previous 3%
Tin HMA 20,000 to <30,000 US$/ton increases to 7.5% from previous 5%
Tin HMA 30,000 to <35,000 US$/ton increases to 10% from previous 7.5%
Tin HMA 35,000 to <40,000 US$/ton increases to 12.5% from previous 10%
Tin HMA 40,000 to <45,000 US$/ton rate of 15%
Tin HMA 45,000 to <50,000 US$/ton rate of 17.5%
Tin HMA ≥50,000 US$/ton rate of 20%