Resource-Rich Indonesia Seeks Higher Returns from Mining Giants

Indonesia plans to raise mining royalties across its resource sector to boost government revenue. As the world’s top exporter of thermal coal and nickel, Indonesia aims to use these natural resources to fund President Prabowo Subianto’s new initiatives.

The proposal shifts from flat rates to price-based progressive structures. Nickel ore royalties would jump from 10% to between 14-19%, with similar changes for nickel products. Coal royalties would increase by just one percentage point (up to 13.5%) when prices exceed $90 per ton. Copper faces the most significant change, with ore royalties potentially rising from 5% to between 10-17%. Tin, gold, silver, and platinum would also see higher rates. These changes serve two purposes: improving mining governance and funding the administration’s ambitious spending plans.