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Indonesia Postpones Increase in Mining Concession Fees

Views: 9     Author: Site Editor     Publish Time: 2026-05-12      Origin: Site

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Indonesia Postpones Increase in Mining Concession Fees

Indonesia has postponed plans to raise royalty tariffs for mining commodities after receiving objections and feedback from industry players during the public consultation process, Energy and Mineral Resources Minister Bahlil Lahadalia said on Monday.

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Bahlil said the proposed royalty adjustments discussed during recent government socialization sessions were not final and remain under review.

“We will postpone this first while we formulate a better arrangement, one that is mutually beneficial,” Bahlil said.

According to him, the government is preparing a revised formula aimed at balancing efforts to increase state revenue with maintaining business sustainability.

He stressed that the proposal has not yet become an official regulation because the related government regulation has not been issued.

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Bahlil Lahadalia, Minister of Energy and Mineral

The ministry had previously proposed higher royalty rates for several mineral commodities, including nickel, gold, copper and tin, amid elevated commodity prices.

Under the draft proposal, the royalty rate for copper concentrate would increase to 9% from 7% when copper reference prices are below US$7,000 per dry metric ton, while the maximum royalty would rise to 13% from 10% when prices exceed US$13,000 per ton.

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