Indonesia Introduces Gold Export Duty: Impact on Mining Companies

New Export Regulations

The Indonesian government, through Finance Minister Purbaya Yudhi Sadewa, has implemented a new export duty on gold effective December 23, 2025, as per Regulation No. 80/2025. This move is anticipated to have significant implications for gold mining companies operating in Indonesia, particularly those with substantial export activities.

Impact on Gold Mining Companies

The introduction of the export duty is likely to affect major gold mining companies such as UNTR, ANTM, BRMS, and PSAB. The new regulation may lead to several key impacts:

1. Profitability Pressure: The additional export duty could reduce the profit margins of these companies, especially those heavily reliant on export revenues.
2. Strategic Reorientation: Companies might shift their focus towards the domestic market to mitigate the impact of the export duty.
3. Operational Adjustments: Firms may need to reassess their production and export strategies to maintain competitiveness.

Rationale Behind the Policy

The government's decision to impose an export duty on gold is part of its broader fiscal and regulatory framework. By implementing this duty, the government aims to capture additional revenue from the export of precious metals while potentially encouraging domestic value addition.

Market Reaction and Future Outlook

The imposition of the export duty is likely to influence the stock performance of affected companies in the short term. Investors will be closely monitoring how these companies respond to the new regulation and adapt their business strategies accordingly. In the long term, the policy could lead to a more balanced growth between export-oriented and domestic-focused operations within the gold mining sector.