Several Mineral Non-Tax State Revenues are Removed in the Revision of Regulation of the Government No. 26/2022.

The removal of several types of Non-Tax State Revenues (Penerimaan Negara Bukan Pajak– “ PNBP ”) is proposed in the amendment of Regulation of the Government No. 26 of 2022 (“ Regulation 26/2022 ”) on the Types and Tariffs of Types of Non-Tax State Revenues Applicable at the Ministry of Energy and MineralResources (Energi dan Sumber Daya Mineral– “ ESDM ”). The removal aligns with the plan to increase royalties for mineral and coal commodities.

The Director of Mineral and Coal Revenue, Toto Abdul Fatah, explained that the removal of types of PNBP proposed in the revision of Regulation 26/2022 includes fixed contribution for exploration Mining Business Licenses (Izin Usaha Pertambangan– “ IUP ”) and production operation IUP for non-metallic minerals and rocks, up to windfall profit on nickel matte.

“This will be removed in the revision of Regulation 26/2022, considering that for non-metal minerals and rocks, we have already delegated authority to regional governments through Regulation of the President No. 55 of 2022,” said Toto.

For non-metal minerals and rocks, the fixed contributions for exploration IUP of IDR 20,000/hectare per year and the fixed contributions for Production Operation IUP of IDR 60,000/hectare per year are removed following the new provisions in Regulation of the President No. 55 of 2022 on the Granting of Business Licensing in the Mineral and Coal Mining Sector (“ Regulation 55/2022 ”).

The windfall profit for nickel matte price above USD 21,000/ton is also removed in line with the proposed progressive tariff, which is another proposal in this regulation.