Challenges Arise in Mineral and Coal Royalty Rules

Challenges Arise in Mineral and Coal Royalty Rules

The Indonesian government faces new challenges in mineral and coal royalty regulations, which could reduce miners' profit margins.

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Rabu, 27 Agustus 2025 | 04:30

Bisnis.com, JAKARTA — The government’s decision to allow miners to sell commodities through business-to-business agreements, as long as they continue paying royalties based on the established benchmark price, has raised new challenges for companies struggling to maintain performance.

The Indonesian Nickel Miners Association (APNI) warned that the new regulations on domestic nickel sales could reduce miners’ profit margins, as companies are required to pay royalties that may exceed their sales revenue.

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