Reforming Mineral Revenue Sharing for Critical Minerals Downstreaming

04 August 2026

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Admin CERAH

Reforming Mineral Revenue Sharing for Critical Minerals

This analytical brief examines why benefit-sharing mechanisms from the downstreaming of critical minerals in Indonesia have yet to deliver equitable outcomes for producing regions and communities. Focusing on the case of nickel in Central Sulawesi and North Maluku, the brief shows that the existing formula for the Mineral and Coal Mining Revenue-Sharing Fund (DBH Minerba) remains rooted in an extraction-based logic and does not adequately reflect the added value generated through smelting and downstream processing.

CERAH recommends reforming the DBH Minerba formula to account for the value of processed mineral products and strengthening Regional Endowment Funds (Dana Abadi Daerah). These reforms are essential to ensure that nickel downstreaming not only increases national revenue, but also delivers fairer economic benefits to producing regions and communities affected by mining and mineral processing activities.

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