Jakarta pauses higher royalties and new export levies while consulting miners on impact.

Indonesia has postponed plans to raise royalties and impose new export taxes on key minerals, saying it needs more time to craft an “ideal formulation” that boosts state revenue without overburdening the mining sector.

Policy Pause And Rationale
Energy and Mineral Resources Minister Bahlil Lahadalia said on May 11 that plans to hike royalties for some mining companies and introduce export taxes on selected minerals, including coal, have been put on hold after the government heard concerns from businesses and the public.

Proposed Royalties And Export Levies
Officials had earlier signalled new revenue measures targeting higher royalties and levies on mineral exports as part of a broader push to capture more value from Indonesia’s resource base, although specific rates and thresholds had not yet been finalised.

Consultation With Mining Firms
Bahlil said his ministry is now collecting structured feedback from miners to ensure any revised policy strengthens state finances without undermining investment, jobs or production, stressing the need for a “good, mutually beneficial formula” before moving ahead.

Revenue Goals Remain Intact
Despite the delay, the government’s aim of increasing mining-sector contributions to the budget remains unchanged, with officials expected to use the consultation period to refine options that align with both fiscal targets and the sector’s competitiveness.

Next Steps In Policy Design
The ministry will review input from companies and stakeholders, model potential impacts and then table a revised proposal for cabinet consideration, with Bahlil signalling that only when a balanced framework is ready will the royalty and export-tax reforms be revived.

Indonesia’s decision to pause new mining levies reflects the difficulty of balancing resource nationalism with the realities of global competition and sector investment cycles. For Indonesians, a well-calibrated policy could support public spending without choking a key export earner; for Singaporeans and regional investors, the process bears watching as it will shape supply, pricing and long-term certainty in one of the world’s most important mining jurisdictions.

Sources: Reuters (2026) , Discovery Alert (2026)

Keywords: Mining Royalties, Export Tax Plans, Bahlil Lahadalia, Sector Feedback, Revenue Measures