Indonesian President Mandates 70% State Share of Mining Proceeds

Key Facts

President Prabowo Subianto ordered that at least 70 percent of proceeds from mining permits must benefit the state. AsiaOne reported that the President emphasized in a speech that profits must predominantly go to the Indonesian people, suggesting that the state should hold controlling stakes in mining assets where necessary.

The mandate aims to ensure the government secures a greater share of benefits from strategic mineral resources while remaining open to foreign investment. A statement from the presidential palace clarified that the 70 percent stipulated by the president refers specifically to the proceeds from the management of mining permits, impacting sectors such as nickel and coal.

The Indonesian government is scheduled to announce its Interest Rate Decision on November 18, 2026, with forecasts projecting a rate of 6% compared to the previous 5.75%.