The Ministry of Energy and Mineral Resources (ESDM) has calmly responded to widespread speculation of planned increase in nickel royalties from 10 percent to 15 percent.
“I’ll check about it first,” Deputy Minister of ESDM, Yuliot Tanjung, spoke to the media at the House of Representatives (DPR) building on Friday, January 24, 2025.
Similiarly, Director of Mineral and Coal Program Development at the Ministry of ESDM, Julian Ambassadur Shiddiq, admitted that he was not yet aware of any discussion regarding the increase in royalties.
“I haven’t received the information about it because it’s not within my area of responsibility. So I don’t know about it yet,” Julian said.
The issue of increased nickel royalties was first expressed by the Indonesian Nickel Miners Association (APNI). APNI Secretary General, Meidy Katrin Lengkey, conveyed the miners’ concerns about the policy which is said to reduce their profit margins.
“Yesterday we got another information … The royalty which was previously set at 10 percent, will increase to 15 percent,” Meidy said after attending a Plenary Meeting with the Legislative Body (Baleg) of the House of Representatives on Wednesday, January 22, 2025.
APNI considers the plan to increase the royalty to 15 percent will put additional pressure on the nickel industry, especially for miners who are already facing challenges in the global market.
“If the royalty increases, our profits will automatically decrease. This is very burdensome,” Meidy said.
Although there has yet been any official explanation from the Ministry of Energy and Mineral Resources, mining industry players hope that the government will immediately provide clarity regarding this policy.
APNI also asked for a dialogue with the government to discuss the impact of the increase in royalties on the sustainability of the nickel mining sector in Indonesia.
Until now, the Ministry is still in the stage of checking and confirming the truth of the issues that have circulated.
