Jakarta, Indonesia Sentinel — Indonesia’s Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, has announced an increase in royalty rates and non-tax state revenue (PNBP) for gold and nickel commodities. The planned hike will range between 1.5% and 3%.
Bahlil justified the move by citing favorable market conditions, with both gold and nickel prices experiencing an upward trend.
“Yes, we are increasing the rates because we see that nickel prices are strong, and gold prices are also high. It wouldn’t be fair if the state didn’t receive additional revenue when commodity prices are rising,” Bahlil said at the Presidential Palace on Thursday (March 20), as reported by Kumparan.
To implement the changes, the government is revising several regulations, including Government Regulation (PP) No. 15 of 2022, which governs taxation and non-tax state revenue in the coal mining sector.
Royalty Rate Adjustments
Bahlil stated that the regulatory revision concerning royalty rate adjustments is nearing completion. “It’s almost finalized. This revision addresses royalties on both raw materials and finished products, supporting downstream processing efforts,” he said.
Bahlil states that the revised rates will vary based on global price trends, ranging from 1.5% to 3%.
“The increase will be between 1.5% and 3%, depending on price fluctuations. If prices rise, we will apply the highest rate. However, if prices fall, the government should not impose excessive taxes on businesses because we need them to grow,” Bahlil explained.
Read Also:
Freeport Smelter Repairs Estimated to Cost $130 Million, While Copper Exports Await Approval
Expanding Non-Tax Revenue Sources
In addition to gold and nickel, the government is also revising PP No. 26 of 2022, which regulates types and tariffs of non-tax state revenue applicable to the Ministry of Energy and Mineral Resources.
The government is seeking to expand its non-tax revenue base, particularly from mineral and coal commodities. “We are exploring new state revenue sources, especially by increasing royalties in the gold, nickel, and other commodity sectors, including coal,” Bahlil said, as reported by CNN Indonesia.
According to him, the government will further examine royalty applications on additional mineral products that have not yet contributed to state revenue.
“We are considering revenue generation from other derivative mineral products that have not been a part of the country’s income streams,” he added.
As the government finalizes these regulatory changes on gold and nickel royalty rates, industry stakeholders will be closely watching how the new royalty structure impacts investment and the broader mining sector in Indonesia.
(Raidi/Agung)
