The Indonesian government plans to increase royalty payments by domestic miners to address budget strains from President Prabowo Subianto's flagship programs, such as free nutritious school meals and the creation of the Daya Anagata Nusantara Investment Management Agency. The proposed hike targets various minerals, including nickel, copper, and coal, with nickel royalties potentially rising from a fixed 10% to a range of 14%–19%, depending on government-set prices. Taxes on smelter-processed products like ferronickel and nickel pig iron are also expected to increase. This initiative comes amidst falling nickel and coal prices, which have pressured producers, some of whom are considering production cuts. Analysts warn the adjustments could weaken Indonesia's position in the downstream industry, reduce profit margins, and affect overall production turnover. Meanwhile, coal miners may face varying impacts depending on their permits. The revisions align with updates to Government Regulations No. 26/2022 and No. 15/2022, aiming to boost non-tax state revenue (PNBP) while ensuring sustainability. However, experts, including Bisman Bhaktiar, Executive Director of Center for Energy and Mining Law Studies (PUSHEP), argue that the timing is unfavorable due to declining commodity prices, higher operational costs, and export restrictions. They recommend delaying the increase to prevent further industry strain and economic slowdown.Source:https://premium.bisnis.com/read/20250311/664/1860420/indonesian-govt-to-adjust-mineral-and-coal-mining-royalty-rates  (ICE GIACARTA)

Fonte notizia: Bisnis Indonesia, 11 March 2025