The Minister of Mines in Indonesia stated that mining royalties will soon take effect.

Published: Apr 9, 2025 18:35

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On Wednesday, April 9, Indonesia's Minister of Mining stated that a regulation increasing royalty payments by mining companies for commodities such as coal, nickel, copper, gold, and tin would take effect in the second week of April. The regulation aims to improve industry management and will raise royalty rates for metal products based on price levels, including the introduction of progressive tax rates for nickel ore, matte nickel, and nickel iron. However, mining groups have urged the government to reconsider the increase as they are already struggling with rising operational costs. Minister Bahlil Lahadalia said, "We appreciate all the input, but we see a greater benefit for our country." He added, "This regulation will take effect in the second week of April." Documents from the Ministry of Mining show that the government proposed royalty rates for nickel ore ranging from 14% to 19% based on benchmark price levels, compared to the current flat rate of 10%. For coal, the government will increase the royalty rate by one percentage point to 13.5%, provided that the benchmark coal price reaches at least $90 per mt.

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