Indonesia to Consider Coal Export Levy Implementation

Government Plans Revenue Enhancement Measure

The Indonesian government is actively exploring the implementation of a coal export levy set to commence in 2026, as revealed by Finance Minister Purbaya Yudhi Sadewa. The proposed measure is currently under discussion and aligns with the government's broader strategy to enhance state revenue through export levies, following the planned introduction of a gold export levy in the same year.

Rationale Behind the Proposed Levy

Minister Purbaya emphasized that the decision to proceed with the coal export levy remains firm despite potential opposition from some mining industry players. The government's stance is supported by the fact that current royalty contributions from the coal sector are significantly lower compared to revenues generated from oil and gas (migas). This disparity underscores the potential for increased state earnings through the implementation of the proposed levy.

Implications for the Coal Industry

The introduction of a coal export levy is expected to have significant implications for Indonesia's coal industry. While the measure is designed to boost government revenues, it may also affect the competitiveness of Indonesian coal exports in the global market. The final decision on the levy will likely be made after careful consideration of these factors.

Alignment with Previous Policy Initiatives

The planned coal export levy follows the government's recent announcement regarding the implementation of a gold export levy in 2026. This move is part of a broader effort to optimize revenue collection from key commodities. The government's strategy reflects a commitment to diversifying and enhancing revenue streams beyond traditional oil and gas sources.