Indonesia Cancels Mining Gross Split Plan
Indonesia drops mining gross split proposal and plans RKAB relaxation, boosting sentiment for mining stocks.
Indonesia's Ministry of Energy and Mineral Resources (ESDM) has confirmed that the proposed gross split scheme for the mining sector will not be implemented. Energy Minister Bahlil Lahadalia stated that the gross split mechanism will remain exclusive to the oil and gas industry. The decision provides positive sentiment for Indonesian mining stocks, which had faced pressure from investor concerns over potential changes to revenue-sharing arrangements in the country's mineral and coal sectors.
For Indonesia's hospitality industry, developments in the mining sector can indirectly influence business travel activity and regional hotel demand. Stable investment conditions in the mineral and coal industries often support corporate travel, accommodation demand in mining regions, and MICE-related activities connected to the energy and natural resources sectors. Policy clarity also helps strengthen investor confidence in Indonesia's broader business environment.
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Indonesia Scraps Proposed Mining Gross Split Scheme, RKAB 2026 Relaxation Brings Positive Outlook for the Mining Sector
The Indonesian government has confirmed that the proposed implementation of a gross split scheme for the mineral and coal (mining) sector will not move forward. Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, emphasized that the gross split mechanism will remain exclusive to the oil and gas industry, with no changes to the revenue-sharing framework for mining companies.
The announcement was made on Monday (June 8), putting an end to market speculation that had emerged since early May 2026 regarding the possible adoption of a similar scheme in the mining sector. The government had previously considered introducing a revenue-sharing mechanism modeled after the system currently used in the oil and gas industry.
In addition to canceling the proposed mining gross split policy, the government also indicated that it will implement a measured relaxation of production quotas under the 2026 Work Plan and Budget (RKAB). The move comes amid rising global commodity prices and aims to optimize state revenue from Indonesia’s natural resource sector.
According to Bahlil, any adjustment to production quotas must maintain a balance between a company’s production capacity and the government-approved mining output allocation to ensure sustainable industry operations. Mining companies will also be allowed to submit RKAB revisions beginning in July 2026.
Positive Sentiment for Mining Stocks
The cancellation of the proposed gross split scheme has been welcomed by investors, as speculation surrounding the policy had previously weighed on the share prices of several mining companies. During trading on Monday (June 8), mining stocks demonstrated greater resilience than the broader Jakarta Composite Index (JCI), which declined by 4.52%.
Several mining-related stocks traded relatively flat, suggesting that investors responded positively to the government’s policy clarification. Regulatory certainty remains a key factor in maintaining Indonesia’s attractiveness as an investment destination, particularly in the mining sector, which continues to be one of the country's largest contributors to export earnings.
Challenges Still Remain
Despite the positive development, the mining industry continues to face several challenges, including the government’s planned centralization of strategic commodity exports. The policy remains a concern for industry participants due to its potential impact on supply chains and commodity trading mechanisms.
For the metals sector, however, concerns have eased somewhat following indications that exemptions may be granted to companies with government agreements related to investment commitments, divestment obligations, and domestic processing and refining facilities under Government Regulation No. 24/2026.
Implications for the Hospitality and Tourism Industry
For Indonesia’s hospitality sector, stability in the mining industry carries meaningful indirect benefits. Mining investments and operational activities generate business travel demand, accommodation requirements, corporate meetings, and MICE (Meetings, Incentives, Conferences, and Exhibitions) activities, particularly in regions with significant mining operations.
The government’s decision to abandon the proposed gross split scheme and consider RKAB 2026 quota relaxation is expected to strengthen investor confidence and support economic activity across multiple regions. This environment could contribute positively to hotel occupancy rates, meeting facility utilization, and overall growth within the hospitality sector.
With commodity prices remaining relatively strong and the government seeking to balance state revenue objectives with industry sustainability, the mining sector is expected to remain one of the key drivers of Indonesia’s economy throughout 2026.
Sumber : Stockbit
