Indonesia Introduces New Coal Export Duty Mechanism

Different Approach from Gold Export Duty

The Indonesian Ministry of Energy and Mineral Resources (ESDM) is developing a new export duty mechanism for coal that differs significantly from the existing gold export duty system. While gold export duty is fixed at 15%, the coal export duty will be price-sensitive, only being applied when global coal prices reach certain threshold levels.

Formulation and Implementation

Director General of Mineral and Coal Tri Winarno stated that the ministry is currently finalizing the formulation and tariff for the coal export duty. While the reference figures have been determined, the exact details remain undisclosed pending further calculations. The ministry is balancing between maintaining industry viability and optimizing state revenue.

Industry Considerations

The ESDM is taking a cautious approach to avoid overburdening the coal industry with additional costs that could lead to business failures. The new mechanism aims to ensure that the industry remains sustainable while contributing appropriately to state revenue. The final formulation is expected to address both these objectives effectively.