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Indonesia Pushes Higher Mineral Royalty Tariffs to Plug Fiscal Gap

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Algo Research Team

Industry | May 10, 2026 | Views: 412

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Key Summary:

  • Proposed tariffs changes aimed to increase tax revenue
  • Adjustment needed as prices have surged beyond threshold
  • Pushes for overseas M&A, other sectors could be next

The Indonesian Ministry of Energy and Mineral Resources (ESDM) is proposing a sweeping upward revision to mineral royalty tariffs that were only recently enacted under Government Regulation (PP) 19/2025.


The proposed structure raises rates across copper, gold, silver, nickel ore, tin, chromium by-products, and cobalt, while expanding price brackets to capture upside from elevated commodity prices.

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