Indonesia to Implement Coal Export Duty in January 2026

Progressive Tariff Structure Under Consideration

The Indonesian government is set to introduce an export duty on coal starting January 2026, with industry experts suggesting that the tariff should be progressive and linked to global coal prices ²

. Bisman Bachtiar from Pushep suggests that the duty should only be applied when coal prices reach $160 per ton, considering current prices are around $106.35 per ton ¹

Source 1

https://industri.kontan.co.id/news/ini-hitungan-harga-ideal-batubara-yang-dikenakan-bea-keluar-menurut-pakar

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Industry Stakeholder Concerns

Industry players, represented by the Indonesian Coal Mining Association (APBI), are awaiting detailed regulations regarding the tariff rate and implementation mechanism ³

. Gita Mahyarani, APBI's Executive Director, emphasized that clarity is crucial as the export duty will directly impact production planning and export strategies.

Proposed Tariff Implementation Thresholds

Different thresholds have been proposed for implementing the export duty. Wijayanto Samirin from Paramadina University suggested a progressive tariff structure starting at 1% when prices reach $90 per ton, gradually increasing to 5% when prices hit $100 per ton or more ²

. This approach is considered fairer as it correlates the duty with the coal price.

Impact on Industry Competitiveness

While the export duty is expected to boost state revenue, concerns remain about its impact on the competitiveness of Indonesian coal exports. Bisman noted that higher export costs could make Indonesian coal less competitive in the global market, potentially reducing production volumes if global prices weaken ¹

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