【Latest Developments in Indonesia's PNBP Policy】On April 9, Bahlil Lahadalia, the Minister of Energy and Mineral Resources (EMR), stated in an interview: "The adjustment of mineral and coal royalties will take effect in the second working week of April, which is next week."

Bahlil claimed that the Ministry of Energy and Mineral Resources will soon issue a ministerial decree listing the new royalty rates, increasing the royalties for various mineral and coal mining commodities.

This policy is a revision to the "Government Regulation No. 26/2022 on Types and Tariffs of Non-Tax State Revenues (PNBP) in the Energy and Mineral Resources Sector," which has been in effect since 2022. Since 2022, the Indonesian government has set the royalty for nickel ore at a fixed rate of 10%. According to SMM, this policy primarily targets companies holding IUP/IUPK licenses.

The modification of the PNBP-related policies was originally planned to be enacted before Eid al-Fitr but was delayed due to industry disputes over the increase and the announcement of Trump's tariff policies. However, the market still holds strong expectations that the policy will be implemented in the near future.

Currently, Indonesia's EMR has not officially announced the details of the policy modifications. SMM will continue to monitor the situation and provide the market with first-hand related information.