Jakarta -The Ministry of Energy and Mineral Resources (ESDM) has revealed plans to increase royalty rates for six mineral and coal (minerba) commodities, including nickel, tin, coal, copper, silver and gold.
Secretary General of the Ministry of Energy and Mineral Resources Dadan Kusdiana said the main principle of this policy is the sharing of benefits so that the profits from the mining sector are not only enjoyed by companies, but also provide a greater contribution to the country in this case non-tax state revenue (PNBP). Regarding revenue to the country, Dadan said that his party is currently still calculating.
“The principle is sharing benefits, sharing benefits. So if there are benefits, don’t let all the companies enjoy them,” he said at the ESDM Ministry Office, Central Jakarta, Tuesday (11/3/2025).
Regarding the plan to increase royalties, said Dadan, the Ministry of Energy and Mineral Resources has conducted a public consultation on the proposed adjustment of the types and rates of PNBP for mineral and coal natural resources (Revised PP 26/2022) last Saturday.
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Dadan said, in the consultation the government claimed that entrepreneurs did not object to the planned increase in royalties. Moreover, Dadan said, the planned increase in royalties is in the national interest.
“I think in the context of the national economy, everyone has the same opinion. Including from corporations,” he said.
Coal
The IUPK royalty rate is proposed to increase by 1% for Reference Coal Price (HBA) ≥ US$ 90, with a maximum rate of 13.5%.
The IUPK rate is revised with a range of 14%-28%, replacing the previous provisions in PP 15/2022.
Nickel
Nickel Ore: Progressive rates starting from 14%-19% adjusting HMAD
Nickel Matte: Progressive rates starting from 4.5%-6.5% adjusting HMA Windfall Profit removed
Ferro Nickel & Nickel Pig Iron: Progressive rates starting from 5%-7% adjusting HMA.
Copper Copper Ore
: Progressive rates starting from 10% to 17% according to HMA
Copper Concentrate: Progressive rates starting from 7% to 10% according to HMA
Copper Cathode: Progressive rates starting from 4% to 7% according to HMA
Gold & Silver
Gold: Progressive rates from 7% to 16% adjusting HMA
Silver: Single Rate from 3.25% to 5%.
Platinum: Single Rate from 2% to 3.75%.
Tin Metal From a flat rate of 3% to a progressive 3%-10% following the selling price.
New PNBP Additional Proposal
The government also plans to add new PNBP from a number of commodities, namely diamonds, silver nitrate, kolblate metal, cobalt as a by-product in nickel matte, silver in lead concentrate.
Intan: Fixed Contribution for Intan Work Contract (KK):
– Exploration Stage: IDR 30,000
– Exploitation/OP Stage: IDR 60,000
Production Contribution/Royalty: Single Tariff 6.5%
Silver nitrate: Production Fee/Royalty: Single Tariff 4%
Cobalt metal: Production Fee/Royalty: Single Tariff 1.5%
Cobalt as a by-product in nickel matte: Production Fee/Royalty: Single Tariff 2%
Silver in lead concentrate: Production Fee/Royalty: Single Tariff 3.25%