The Indonesian government revises royalty tax regulations for the mineral and coal sectors to increase state revenue from the mining sector and explore revenue potential from other mineral derivatives. The current tax rate for coal applies a progressive rate based on the benchmark coal price (HBA) and a 14%-28% rate for IUPK. After revision, the rate will increase by 1% for HBA equal to or above USD 90/ton, up to a maximum of 13.5%; the IUPK rate of 14%-28% sees adjustments in its rate range. Nickel ore currently has a single rate of 10%, which will be revised to a progressive rate of 14%-19%; nickel matte currently has a single rate of 2% plus a windfall profit tax of 1%, revised to a progressive rate of 4.5%-6.5% with the windfall profit tax abolished; ferronickel currently has a single rate of 2%, revised to a progressive rate of 5%-7%; nickel pig iron (NPI) currently has a single rate of 5%, revised to a progressive rate of 5%-7%. Copper ore currently has a single rate of 5%, revised to a progressive rate of 10%-17%; copper concentrate currently has a single rate of 4%, revised to a progressive rate of 7%-10%; copper cathode currently has a single rate of 2%, revised to a progressive rate of 4%-7%. Gold currently has a progressive rate of 3.75%-10%, revised to a progressive rate of 7%-16%; silver currently has a single rate of 3.25%, revised to a single rate of 5%; platinum currently has a single rate of 2%, revised to a single rate of 3.75%; tin currently has a single rate of 3%, revised to a progressive rate of 3%-10%. The Minister of Energy and Mineral Resources stated that discussions on the increase of royalty taxes for the mineral sector are nearing completion.
The Indonesian government revises royalty tax regulations for the mineral and coal sectors to increase state revenue from the mining sector and explore revenue potential from other mineral derivatives. The current tax rate for coal applies a progressive rate based on the benchmark coal price (HBA) and a 14%-28% rate for IUPK. After revision, the rate will increase by 1% for HBA equal to or above USD 90/ton, up to a maximum of 13.5%; the IUPK rate of 14%-28% sees adjustments in its rate range. Nickel ore currently has a single rate of 10%, which will be revised to a progressive rate of 14%-19%; nickel matte currently has a single rate of 2% plus a windfall profit tax of 1%, revised to a progressive rate of 4.5%-6.5% with the windfall profit tax abolished; ferronickel currently has a single rate of 2%, revised to a progressive rate of 5%-7%; nickel pig iron (NPI) currently has a single rate of 5%, revised to a progressive rate of 5%-7%. Copper ore currently has a single rate of 5%, revised to a progressive rate of 10%-17%; copper concentrate currently has a single rate of 4%, revised to a progressive rate of 7%-10%; copper cathode currently has a single rate of 2%, revised to a progressive rate of 4%-7%. Gold currently has a progressive rate of 3.75%-10%, revised to a progressive rate of 7%-16%; silver currently has a single rate of 3.25%, revised to a single rate of 5%; platinum currently has a single rate of 2%, revised to a single rate of 3.75%; tin currently has a single rate of 3%, revised to a progressive rate of 3%-10%. The Minister of Energy and Mineral Resources stated that discussions on the increase of royalty taxes for the mineral sector are nearing completion.