Gross Split Scheme Only Applies to Oil & Gas, Not Minerals & Coal

RRI.CO.ID, Jakarta – Indonesia's Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, underscored that the gross split scheme is only applied to the oil and gas sector and will not be implemented in the mineral and coal sector. According to him, all regulations currently in force in the mineral and coal sector continue to refer to existing provisions and remain unchanged.

"The system within the Ministry that follows the gross split model applies only to the oil and gas sector. I repeat, at the ESDM, based on the President’s rules and directives, the gross split calculation applies only to the oil and gas sector, specifically oil and natural gas. Meanwhile, in the mineral and coal sector, there are absolutely no changes,” Bahlil stated in Jakarta on Monday, June 8, 2026, as quoted by the ministry’s written press release.

The Minister made this statement following a meeting on Accelerating National Economic Growth with the leadership of the Indonesian House of Representatives. The meeting was also attended by Minister of State Secretary Prasetyo Hadi, Minister of Law Supratman Andi Agtas, and Head of the State-Owned Enterprises Regulatory Agency/Chief Operating Officer of Danantara Indonesia Dony Oskaria.

In addition, Bahlil said this clarification needed to be provided to avoid misunderstandings among business operators following the emergence of various reports regarding the implementation of the gross split scheme in the energy and mineral resources sector. According to him, regulatory certainty is crucial for maintaining the investment climate and the sustainability of existing mining operations.

"For existing mining operators, there are no changes to the rules. There will be no changes to the existing regulations. No policies will change permanently, it is my duty to ensure that," he said.

Besides discussing regulatory certainty in the mining sector, the meeting also addressed the government’s steps to ensure the sustainability of the national downstreaming program. One key focus is ensuring the availability of raw materials for processing and smelting industries, both those already in operation and those currently under development.

The Gross Split scheme is a profit-sharing method for oil and gas management between the Government and contractors, where the profit split is calculated as a percentage of gross production from the outset. Under this system, all operational risks and costs are fully borne by the contractor without any cost recovery mechanism.