Finance Minister Purbaya Yudhi Sadewa stated that the government will impose an export duty or coal export tax ranging from 1% to 5% starting January 1, 2026. 

“Starting January, it will take effect immediately,” Purbaya said at the State Palace in Jakarta on Monday, December 15. 

Purbaya explained that the policy is part of the government’s efforts to increase state revenue. “The target is clear, how many trillions of rupiah must be achieved. The government should not end up subsidizing the coal industry,” he said. 

Previously, Purbaya introduced an export tax on gold in the range of 7.5%–15% through the issuance of Minister of Finance Regulation (PMK) No. 80 of 2025. The regulation was signed on November 17, 2025, promulgated on December 9, 2025, and took effect 14 days after the promulgation date. 

The implementation of export duties on gold and coal is expected to help safeguard domestic raw material supply, accelerate downstream processing, strengthen governance and supervision, and increase state revenue. 

The export duty policy is also considered consistent with Article 2A of Law No. 17 of 2006 on Customs, which stipulates that export duties may be imposed to ensure domestic supply availability and stabilize commodity prices. 

The gold export tax is intended to increase domestic value added through downstream processing, support fulfillment of gold demand within the bullion bank ecosystem, optimize oversight of gold transaction governance, and enhance state revenue. 

Meanwhile, the coal export duty policy is aimed at encouraging downstream processing, supporting coal decarbonization initiatives, and increasing state revenue. Coal remains an important mining commodity in maintaining national economic stability. 

Although Indonesia is the third-largest coal producer in the world, most exports are still in the form of raw materials, resulting in suboptimal value added. 

“For this reason, the export duty instrument is being prepared to increase state revenue while also encouraging downstream processing and decarbonization. The mechanism is currently being finalized together with relevant ministries,” Purbaya said during a working meeting with Commission XI of the House of Representatives (DPR) at the Parliament Complex in Senayan, Jakarta, on Monday, December 8. 

This article is published in partnership with Katadata 

Original article here