To Reassure Investors, Bahlil Confirms No Changes to Mining Regulations
Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has provided guarantees of legal certainty for business players in the mineral and coal mining (minerba) sector. This follows rising concerns regarding plans to adapt upstream oil and gas (migas) contract schemes to the mining sector.
Bahlil emphasised that the government is committed to maintaining existing regulations, particularly within the current mining sector. “For existing mining business players, there are no changes to the regulations. Moving forward, we will continue to use the same rules, although the Mining Law does provide priority to MSMEs and certain sectors that are priorities in supporting downstreaming to create added value,” he stated following a meeting with the Deputy Speaker of the House of Representatives, Sufmi Dasco Ahmad, and Danantara COO Dony Oskaria at the DPR Building on Monday (08/06/2026).
He added that this serves as an official statement from the state on behalf of the President. “I believe this is official information from the state on behalf of the President. The Minister of ESDM is conveying this so there is no more debate over misleading information. If there is any uncertainty, come to me; do not ask others whose information may not be as accurate as what I am providing,” he asserted.
On the same occasion, he reaffirmed that the agreement or licensing schemes in the mineral and coal mining sector will not change indefinitely, noting that this aligns with the directives of President Prabelle Subianto. Bahlil clarified that the Gross Split revenue-sharing scheme applies only to the upstream oil and gas industry and will not be implemented in the mining sector.
“Today, we held a long discussion of almost 1.5 hours on how to formulate a policy that provides certainty to business players, especially in the mining sector. Firstly, the ESDM system that adopts the Gross Split approach is only for the oil and gas sector. I repeat, based on regulations and Presidential directives, Gross Split is only for oil and gas. Meanwhile, in the mining sector, there are no changes at all. It is important for me to emphasise that existing rules will not change indefinitely; it is my duty to maintain that,” Bahlil explained.
It is known that the Ministry of ESDM had previously been reviewing changes to agreement or revenue-sharing schemes in the mining industry, including the potential application of oil and gas upstream contracts, such as Cost Recovery or Gross Split, to the mineral and coal sector. Rumours had circulated regarding a plan to implement a Gross Split scheme in the mining industry with a revenue-sharing ratio of 70% for the state and 30% for companies. This discourse was intended to examine ways to increase state revenue from the mining sector.
Previously, the Indonesian Mining Experts Association (Perhapi) voiced concerns regarding the government’s plan. The General Chairman of Perhapi, Sudirman Widhy, advised the government not to rush such policies. He noted that the mining industry requires massive investment for operations, necessitating legal certainty to ensure positive returns.
“The government needs to conduct a study first to understand the impact on the mining industry if such a scheme is implemented, so as not to cause a decline in the industry climate,” Widhy told CNBC Indonesia. He added that investors calculate their investments based on current conditions and existing royalty schemes. Therefore, any change in revenue-sharing would affect the calculated returns on invested capital. Consequently, Perhapi requested that the government open a space for discussion with industry players, represented by associations such as IMA, APBI, and APNI, before implementing any Cost Recovery or Gross Split schemes in the mining sector.