Indonesia to keep mining rules unchanged, energy minister says

• Govt will align mining plans with industrial demand, commodity prices
  
  
• Existing mining contracts to remain valid if no under-invoicing is found
  
  

Mysteel Global: Indonesia will keep its mining rules unchanged, energy minister Bahlil Lahadalia said on Monday, seeking to reassure investors as the government pushes ahead with downstream expansions while global commodity markets remain volatile.

Speaking after a coordination meeting, Bahlil said the government had no plan to alter existing regulations in the mineral and coal sector, which is governed by a system of royalties, corporate income tax, and non-tax state revenue (PNBP). He clarified that the 70/30 gross-split profit-sharing scheme applies only to oil and gas, not to coal.

"There will be no changes to the current mining regulatory framework," Bahlil told reporters. "We want policy stability for investors."

The government will align approvals of mining work plans and budgets (RKAB) with industrial demand to ensure sufficient raw material supply for downstream industries, he added. Authorities aim to balance production capacity, industrial requirements, and RKAB quotas to maintain smooth operations.

When setting production policy, officials are closely monitoring global geopolitical risks, including tensions in the Middle East and broader market volatility, Bahlil said. The government will increase production when prices are strong, and adjust output if prices plateau to keep supply and demand balanced and support price stability.

The minister also confirmed that existing mining contracts remain valid as long as there is no evidence of under-invoicing.

To address pricing transparency, state-owned trading house Danantara Sumberdaya Indonesia (DSI) will implement a standardised and transparent commodity pricing methodology, Bahlil said, aiming to prevent under-invoicing and ensure that export values reflect actual transactions.

The government reiterated its commitment to protecting investor confidence, while giving priority access to small and medium enterprises and strategic sectors under the Mining Law. The move is intended to support downstream development and domestic value creation, Bahlil added.

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