Indonesia is advancing discussions on a coal export duty as mandated by the 2026 State Budget Law, with the policy currently under inter-ministerial review. According to Finance Ministry Fiscal Strategy Director General Febrio Nathan Kacaribu, the measure aligns with the government’s broader push to strengthen downstream development and expand domestic economic activity in the coal sector. While the gold export duty has progressed further, the coal export levy remains in the drafting stage, guided by the framework set out in Presidential Regulation No. 55/2008. The technical ministry—ESDM—will propose the tariff structure rather than the Ministry of Finance.
As global coal prices continue to soften, with Indonesia’s benchmark coal price expected to average around USD98 per ton in 2025, the government sees the duty as a strategic tool to secure additional state revenue while maintaining industry resilience. Indonesia, the world’s third-largest coal producer, has historically exported low value-added products, and the new policy is designed to encourage more domestic processing. Febrio emphasized the importance of setting an effective tariff that supports revenue without placing undue pressure on the industry, stating that ongoing coordination will ensure the policy remains balanced and supportive of long-term sector growth.
