Indonesia revises tax regulations for a wide range of minerals

The Indonesian government has revised the regulations related to royalty tax in the mineral and coal sectors in order to increase the revenue from the state's mining sector and to tap the revenue potential from other mineral derivatives.The current tax rate on coal is progressive based on the base coal price (HBA) and 14%-28% for IUPK. the revised rate for HBA greater than or equal to $90 per ton will be increased by 1% to a maximum of 13.5%; IUPK tax rate 14%-28%, with the range of the tax rate being adjusted. Nickel ore current single tax rate of 10%, revised with a progressive tax rate of 14%-19%; nickel matte current single tax rate of 2% plus windfall profits tax of 1%, revised with a progressive tax rate of 4.5%-6.5%, and elimination of windfall profits tax; ferronickel current single tax rate of 2%, revised with a progressive tax rate of 5%- 7% progressive tax rate; nickel pig iron (NPI) existing single tax rate of 5%, revised to implement a progressive tax rate of 5%-7%. Copper ore current single rate 5%, revised to apply progressive rates of 10%-17%; copper concentrate current single rate 4%, revised to apply progressive rates of 7%-10%; copper cathode current single rate 2%, revised to apply progressive rates of 4%-7%. The current progressive tax rate of 3.75%-10% for gold is revised to implement a progressive tax rate of 7%-16%; the current single tax rate of 3.25% for silver is revised to a single rate of 5%; the current single tax rate of 2% for platinum is revised to a single rate of 3.75%; the current single tax rate of 3% for tin is revised to a single rate of 3% , with a revised progressive tax rate of 3%-10%. The Minister of Energy and Mineral Resources said that the discussion on the increase of royalty tax in the mineral sector is nearing completion.