An Indonesian regulation that raises the royalties paid by mining companies on commodities such as coal, nickel, copper, gold and tin will take effect in the second week of April, the mining minister said on Wednesday.
The regulation seeks to improve industry governance and will raise royalties of metal products based on price levels, including introducing progressive rates for metals such as nickel ore, nickel matte and ferronickel.
Miners group have urged the government to reconsider the hike, however, as they are already struggling with rising operational costs.
“We appreciate all the inputs but we are seeing the bigger interest for our country,” minister Bahlil Lahadalia told reporters.
“The regulation will take effect in the second week of April,” he said.
The government proposed levying royalties ranging between 14% and 19% for nickel ore, depending on benchmark price levels, compared with the current 10% flat rate, according to the ministry’s public consultation document.
For coal, the government would raise royalty rates by one percentage point to up to 13.5%, but only when the benchmark coal price hits at least $90 per metric ton.
(By Bernadette Christina and Ananda Teresia; Editing by John Mair and Martin Petty)
