Stances of Purbaya and Bahlil on Mining Royalties: Will They Still Increase or Not?

Finance Minister Purbaya Yudhi Sadewa stated that the government is preparing an increase in royalties and export duties for several mining commodities. The policy is targeted to take effect from June 2026. Purbaya said that discussions regarding the increase in mining sector levies have so far been completed. The government is now awaiting the issuance process of the government regulation (GR). “The discussions are finished, the GR has been submitted. It might take effect from early June,” said Purbaya during a media briefing at the Ministry of Finance, Jakarta, on Monday (11/5/2026). He mentioned that the increase in royalties and export duties is likely to apply to various mining commodities. However, the details of the policy are still awaiting the official regulation to be issued by the government. “Across the board, that’s all mining goods,” he said, quoting discussions with Energy and Mineral Resources Minister Bahlil Lahadalia. Purbaya stated that the government is still monitoring the process of finalising the regulation before the policy is fully implemented. According to him, the implementation timeline heavily depends on the speed of the government regulation issuance process. The policy to increase royalties and export duties is being prepared amid the government’s efforts to enhance state revenues from the natural resources sector. Additionally, the government is also tightening regulations on Export Proceeds Foreign Exchange (DHE) to ensure that export funds remain stored domestically.