Indonesia delays mining royalty hikes, but policy uncertainty weighs on sector

[JAKARTA] Indonesia has delayed plans to increase royalties on several mineral commodities as the government seeks a policy framework that can boost state revenue without undermining the competitiveness of the mining industry.

Energy and Mineral Resources Minister Bahlil Lahadalia said on Monday (May 11) that authorities are still gathering feedback from mining companies before finalising the proposed changes.

The government had previously planned to raise royalties on several key commodities – including coal, nickel, copper, gold and tin – as part of broader efforts to capture more value from Indonesia’s vast natural resources sector. The policy was initially intended to take effect in June this year.