The government has expressed hope that business actors in the mining sector will support its plan to increase royalty rates for a number of mineral and coal commodities as part of the efforts to increase the State revenue.
“Our country happens to have a low cash flow compared to other countries. So my hope for my friends is, let's support it together," Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources (ESDM), Tri Winarno, told reporters, on Monday, March 24, 2025.
The six commodities proposed to experience changes in royalty rates include coal, nickel, copper, gold, silver, and tin. This policy aims to increase State revenue through Non-Tax State Revenue (PNBP) from the mining sector.
Responding to reports that mineral and coal royalty rates in Indonesia are higher than other countries, Tri emphasized that this is in accordance with the operational cost needs of mining in Indonesia.
“Our cost is 40 percent lower so it's reasonable. Article 33 of the 1945 Constitution stipulates that Indonesia owns the land, water, and all its wealth. Meanwhile in Australia, landowners also have rights to the wealth in it. This is different," he cited.
The government also ensures that the plan to increase the royalty rate had gone through an in-depth study. The calculation was based upon two consecutive years of financial reports from several mining companies.
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