Royalti

Royalti is a term used in several languages, notably Indonesian and Malay, to denote a payment made to the holder of a right for the use of an asset or resource. It is derived from the English term royalty and has become a standard part of contractual and regulatory language in those jurisdictions.

In natural resources economics, royalti refers to a share of revenue or production paid to the owner of the resource—typically the state or a landowner—for permission to extract minerals, oil, gas, or timber. Royalti rates are usually set by law or contract and may be expressed as a percentage of gross revenue, net revenue, or the value of production. Rates can be flat, tiered, or subject to exemptions and deductions. Royalti payments are distinct from taxes or resource rents and are often due regardless of overall profitability.

Intellectual property usage: In many contexts, royalti also covers payments to rights holders for the use of intellectual property—such as copyrights, trademarks, or patents—under licensing agreements. These payments are commonly tied to sales, usage, or units manufactured and are negotiated between the IP owner and the licensee.

Administration and policy: Governments regulate royalti through statutes and contracts, and enforcement is typically handled by a ministry of resources, energy, or finance, sometimes with specialized royalty authorities. Transparent reporting and monitoring, including international standards like the Extractive Industries Transparency Initiative, are emphasized in many jurisdictions.

See also: royalty (economic concept); licensing; mineral royalty; oil and gas royalty; intellectual property license.