Govt proposes higher royalties for coal, mineral commodities to boost State revenue

  • Published on 12/03/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

tax-payment

The Ministry of Energy and Mineral Resources (ESDM) has proposed an increase in royalty rates or Non-Tax State Revenue (PNBP) in the mineral and coal (minerba) sector.

 

There are six mineral commodities that will experience royalty rate adjustments, namely coal, nickel, copper, gold, silver and tin.

 

Secretary General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, said that this measure is meant to ensure that the benefits of the mineral and coal sector are not only enjoyed by companies alone, but are also shared with the State.

 

This proposed increase is currently being reviewed through a revision of Government Regulation (PP) No. 26/2022 on Types and Tariffs for PNBP Applicable to the Ministry of Energy and Mineral Resources.

 

"The principle is sharing benefits, so if there are profits, don't let the company enjoy them all, but they must be shared," Dadan said on Tuesday, March 11, 2025.

 

As part of the revision process, the government has held public consultations with business actors and stakeholders.

 

This consultation includes the revision of PP No.15/2022 on Taxation and/or PNBP in the Coal Mining Business Sector.

 

"In the context of the national economy, all parties, including corporations, have the same opinion," Dadan said. 

 

Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources, Tri Winarno, emphasized that this revision aims to improve governance and state revenues, not to burden the mining industry.

 

"There is no intention to burden any party or industry. We hope the mining industry remains sustainable," Tri said on March 8, 2025.

 

The ESDM ministry is still calculating the amount of tariff adjustments that will be implemented and their impact on State revenues.

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