Jakarta – The Indonesian government has on Wednesday, 16 April, issued new Government Regulation (PP) Number 19, 2025 on Types and Rates of Non-Tax Revenues Applicable in the Ministry of Energy and Mineral Resources. The new regulation sets new royalty tariffs for coal and mineral products, such as gold, metal, nickel, bauxite, tin, and other products.
The regulation replaces PP Number 26, 2022 on Non-Tax Revenues, which regulates coal and mineral products royalties.
The new royalty regulation was signed by President Prabowo Subianto on April 11, 2025, and will become effective 15 days after it was promulgated, namely on April 26, 2025.
The government said the amendment of the royalty regulation aims to optimise government revenues from non-tax sources (BNBP) and strengthen the government’s fiscal position.
Deputy Minister of Energy and Mineral Resources Yuliot Tanjung told reporters Wednesday that the adjustment of royalty rates was also made to create fair treatment for business players.
Yuliot said that PP Number 18 of 2025 regulates the determination of royalty rates for coal, with a maximum rate of up to 17%. Meanwhile, PP Number 19 of 2025 regulates all provisions for minerals.
He noted that under the new royalty regulation, the royalty rate for the coal sector is higher than that for the mineral sector.
Therefore, according to him, the tariff adjustment should not be assessed solely based on the nominal value but also on the percentage of the commodity value.
“For oil and gas, it (the new tariff) can be up to 19%, and for minerals, the highest tariff is around 7%. That still makes sense. It should not be seen from the value, but from the percentage imposed,” said Yuliot.
Raising royalty rates in the mineral and coal sector as part of a move to increase non-tax state revenues. For this year, the government targeted to get revenues from non-tax revenues of Rp513.6 trillion, higher than the previous year of Rp492 trillion.
Non-tax revenues from coal and minerals have significantly contributed to the State Budget over the past years. In 2024, the mineral and coal (minerba) sector contributed 42.21% of total non-tax state revenues.
Over the last 10 years, the average contribution of the mineral and coal sector to non-tax revenues has shown the largest portion, reaching its peak in 2022 at 45.13%, or equivalent to Rp 268.77 trillion. (Roffie Kurniawan)
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