Government considers maximum coal export duty of 8%, tiered tariff scheme to be implemented

Jakarta – The government has announced that it is preparing new policies to attract revenue from the coal sector. The draft regulations, currently in the final stages of discussion, include the imposition of export duties (BK) with tiered tariffs, currently set at a maximum of 8 per cent.

Finance Minister Purbaya Yudhi Sadewa stated that the legal aspects of this draft are being finalised before it is enacted. “The rates have been reviewed, but they are still being debated between 5 per cent, 7 per cent and 8 per cent. There are several levels,” said Purbaya in an official statement recently.

However, Purbaya has not specified whether the tiered tariff scheme will be directly linked to global coal price movements. He only confirmed that the government has opted for a tiered approach so that the burden is not spread evenly.

On the same occasion, Purbaya expressed his desire for this export duty policy to be applied retroactively. Under this scheme, the levy can still be imposed from the beginning of 2026 even though the official regulation is issued after January.

Purbaya also responded to potential objections from coal mining companies. According to him, the country’s fiscal space needs to be maintained, especially since the coal sector has enjoyed various tax incentives with significant value.

“Why should I agree with the businessman? He has already taken Rp25 trillion in VAT from me. I have already suffered losses. He does not agree with me, so why should I just keep quiet?” he said firmly.

The Ministry of Energy and Mineral Resources (ESDM) has confirmed that inter-ministerial coordination will continue before this policy is finalised. ESDM Minister Bahlil Lahadalia said that his ministry will discuss the final tariff with the Ministry of Finance.

Bahlil emphasised that coal export duties would not be applied rigidly. The government plans to link the levy to coal prices so as not to burden the industry when prices are falling.

“What is certain is that export duties will be imposed if coal prices reach a certain level. If prices fall, then no duties will be imposed,” said Bahlil at a press conference on the performance of the energy and mineral resources sector on Thursday, 8 January.

Meanwhile, from the business side, the Indonesian Coal Mining Association (APBI) has requested that the government consider the real conditions of the industry before finalising its policy. APBI Executive Director Gita Mahyarani said that businesses are still waiting for official confirmation from the government and hope that the scheme implemented will be proportional.

“We are waiting for official confirmation and do not want to speculate. However, we hope that the scheme that is eventually established will be proportional and take into account the current relatively low price trend and the still relatively high operational costs,” said Gita.

Gita explained that APBI understands the plan to impose export duties as part of the government’s strategy to maintain state revenue, especially amid significant fiscal needs. However, according to her, this policy needs to be adjusted to the pressures currently faced by the coal industry. (Hartatik)

Banner photo: Mikhail Nilov/Pexels.com

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