Quick Note - Indonesia Commodity - Royalty rate change: Gold, silver, nickel, tin

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Quick Note - Indonesia Commodity - Royalty rate change: Gold, silver, nickel, tin

Nomura Securities Malaysia Sdn Bhd

11 May 2026Indonesia Commodity

EQUITY: METALS & MINING

Royalty rate change: Gold, silver, nickel, tin Research Analysts

Indonesia Research Team

Ahmad Maghfur Usman - NSMQuick Note ahmad.maghfurusman@nomura.com

+603 2027 6892Indonesia is revising PP 19/2025 to increase mining royalty rates, aiming to capture

windfall gains from elevated commodity prices and recalibrate tariff brackets to current Onshore expert

market levels across gold, copper, silver, tin, nickel, chromium, and cobalt (link). The

market reacted negatively, with the JCI falling 2.86% on Friday, led by commodity stocks. Michael Wildon Ng

The revised royalty rates are expected to take effect as early as June 2026. Notably, (michael.wildon@verdhana.id)

royalties are applied to refined products sold, rather than upstream ore, unless ore is Nizam Syafik (nizam.syafik@verdhana.id)

treated as third parties’ businesses.

Theonshoreexperts,whoare

Key changes and earnings impact employedbyPTVerdhanaSekuritas

With commodity prices trending higher (nickel +13% YTD to USD18,900/t; gold +9% to Indonesia(“Verdhana”)andarenot

USD4,700/oz; silver +12% to USD80/oz; tin +33% to ~USD53,800/t), the revised royalty licensedoutsideIndonesia,have

structure will have uneven impacts across commodities: contributedtothecontentofthis

reportunderapartnershipagreement

• Nickel ore: Saprolite (>1.5% Ni) royalty increases marginally from 15% to 16% (+1pp). betweenNomuraandVerdhana.

Earnings impact remains limited, with ~2% profit decline per +1pp increase.

• Tin: Royalty doubles from 10% to 20%, implying the most severe hit, with estimated

earnings down ~31%.

• Gold: Moves into a higher bracket at 19% (vs.