Jakarta – The Indonesian government is drafting a new policy to strengthen state revenue from the mining sector. Through the Ministry of Energy and Mineral Resources (MEMR), the government plans to impose export duties on coal and gold exports, but only when the prices of these commodities surge on the global market.
MEMR Minister Bahlil Lahadalia stated on Friday, 18 July, that this policy is designed to avoid burdening businesses when commodity prices are low, while still providing room for the state to share in the profits when prices soar.
“We don’t want to make it difficult for entrepreneurs when coal prices fall. But if the price rises sharply and profits are high, it’s only natural that the state should enjoy. We will create a fair mechanism,” he Bahlil.
Bahlil emphasised that the determination of export duty rates will be based on economic prices. This means that if the price of coal or gold exceeds the established economic value threshold, export duties will be applied.
Implemented gradually, starting in 2026
This policy will not be implemented immediately. According to the MEMR Director General of Mineral and Coal, Tri Winarno, the implementation of the export duty policy is likely to begin in 2026, taking into account market conditions and regulatory readiness.
“The plan is to start preparing next year, but it is likely to be implemented starting in 2026. We also see the price trend and the readiness of business actors,” Winarno said when confirmed.
The implementation of export duties on coal and gold is designed as a flexible mechanism that follows international price movements. The government targets this scheme to be a source of additional state revenue without disrupting the investment climate and business stability of the mining sector.
Currently, the prices of coal and gold tend to be volatile. In recent years, the surge in global coal prices has provided a windfall for industry players, but the direct contribution to state revenue has not been maximised due to the absence of a dynamic export duty scheme.
The government hopes that this regulation will not only strengthen the state treasury, but also encourage the utilisation of natural resources in a more equitable and sustainable manner.
“We maintain a balance. Investment must continue, but the country is also entitled to added value when our resources sell well abroad,” Bahlil concluded. (Hartatik)
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