Why Did Bahlil Delay the Mining Royalty Increase?

JAKARTA, KOMPAS.com - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has decided to postpone the implementation of the royalty rate increase for mining commodities such as copper, nickel, tin, gold, and silver.

It is known that the Ministry of ESDM is currently revising Government Regulation (PP) No. 19 of 2025, which will set adjustments to the royalty rates for mineral commodities.

Bahlil explained that the royalty rate increase is still under discussion and has not yet been implemented. However, in light of the poor market response to the plan, the government will reconsider it.

“Over the past few days, feedback has already emerged. When there are responses that may not be suitable or do not need to be weighed with a new formulation, as the Minister of ESDM, I will evaluate that, and it has not yet become a decision,” he stated at the Ministry of ESDM in Jakarta on Monday (11/5/2026).

“After hearing input from the public and business associates, I received suggestions. I think I will put this on hold to build a good formulation that is mutually beneficial. The state benefits, but businesses must also profit,” Bahlil revealed.

The Ministry of ESDM held a public hearing on the proposed changes to mining royalty rates for copper, nickel, tin, gold, and silver commodities last Friday (8/5/2026).

In the Ministry of ESDM’s proposal, tin becomes the commodity with the highest proposed royalty rate surge, from the previous 3-10 percent to a range of 5-20 percent, depending on the global Tin Reference Mineral Price (HMA).

The rate then increases to 12.5 percent for HMA in the range of 35,000-40,000 US dollars per tonne and 15 percent for HMA in the range of 40,000-45,000 US dollars per tonne. The increase to 17.5 percent applies when the tin price is in the range of 45,000-50,000 US dollars per tonne.