Indonesia Implements Gold Export Duty to Boost Domestic Processing

Policy Background and Implementation

The Indonesian government, through the Ministry of Finance, has officially implemented a 15% export duty on gold exports starting December 23, 2025, with full enforcement beginning January 1, 2026 ³

. This regulation, outlined in Minister of Finance Regulation (PMK) Number 80 of 2025, aims to support the country's downstream mineral processing industry by making domestic sales more attractive compared to exports.

Impact on Domestic Gold Market

Industry analysts predict that this policy will significantly strengthen Antam's position in the domestic gold market ¹

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Source 4

https://newssetup.kontan.co.id/news/bea-keluar-emas-berlaku-2026-dominasi-antam-di-pasar-domestik-menguat

. With the export duty in place, mining companies are likely to redirect their gold supplies from international markets to domestic sales, thereby increasing Antam's market share. Commodity market expert Ibrahim Assuaibi notes that this move toward potential monopoly by Antam is necessary to meet growing domestic demand, particularly as inflation drives investors toward gold as a safe-haven asset ¹

Source 1

https://industri.kontan.co.id/news/bea-keluar-emas-berlaku-mulai-tahun-depan-begini-efeknya-terhadap-dominasi-antam

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Production and Supply Dynamics

Antam plans to optimize its gold production from the Pongkor mine in West Java and leverage supplies from its affiliate, PT Freeport Indonesia, to meet the anticipated increase in domestic demand ²

. The company expects relatively stable production from Pongkor in 2026 compared to the previous year, focusing on optimizing remaining reserves and improving operational efficiency.

Price Implications

The introduction of the export duty is expected to impact gold pricing in Indonesia during 2026. With global gold prices having surpassed $4,500 per troy ounce recently, the effective export duty rate could potentially exceed 15% if prices remain high ⁵

. This would further incentivize miners to sell domestically rather than export, potentially leading to higher gold prices in the local market.

Regulatory Framework

The Ministry of Trade has established reference prices for gold exports, setting the reference price at $133,912.59 per kilogram and the export benchmark price at $4,165.15 per troy ounce for the period December 23-31, 2025 ⁵

. These prices serve as the basis for calculating the export duty.