The government is targeting Rp 113.38 trillion ($7.1 billion) in non-tax state revenue (PNBP) from the mineral and coal mining sector in 2026, up 7.3% from a projected Rp 105.7 trillion in 2025, according to a draft state budget released on Tuesday.
The increase is driven by higher royalty rates under a new government regulation issued in 2025 and price fluctuations in key commodities such as gold, nickel and copper, the finance ministry said in its 2026 budget documents.
Indonesia faces continued volatility in global commodity markets, which presents a challenge for optimizing revenue from natural resources, the documents said.
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To achieve its 2026 target, the government plans to strengthen oversight and enforcement through five measures: integrating data systems across ministries via the SIMBARA platform, implementing an automatic blocking system for non-compliant companies, enhancing interagency monitoring of export and domestic transactions, using taxpayer ID numbers as a unified identifier, and imposing sanctions on firms failing to meet domestic market obligations or smelter development targets.
Mineral and coal PNBP revenue reached Rp 74.2 trillion in the first half of 2025, or 59% of this year’s Rp 124.7 trillion target. Total PNBP from the energy and mineral resources sector hit Rp 138.8 trillion in the same period, or 54.5% of the full-year target of Rp 254.5 trillion.
The mining sector was the largest contributor to energy-related PNBP in H1 2025, followed by oil and gas at Rp 57.3 trillion, and renewable energy and conservation at Rp 1.09 trillion.
Minister of Energy and Mineral Resources Bahlil Lahadalia said the government is working to meet its revenue targets despite declining coal and oil prices.
Editing by Reiner Simanjuntak
