Indonesia to Implement Coal Export Tax in 2026

Finance Minister Signals New Tax Policy

Indonesia's Finance Minister, Purbaya Yudhi Sadewa, has announced plans to introduce an export tax on coal starting from 2026. The decision comes despite anticipated resistance from coal industry stakeholders. Purbaya justified the move by highlighting that the current royalty rate for coal is lower compared to other mining commodities such as oil and gas.

Rationale Behind the Export Tax

The Finance Minister emphasized that the royalty rate for coal is relatively low, suggesting that the industry can afford to contribute more to state revenues. Purbaya stated that it is natural for companies to oppose additional taxes, but the government views this measure as necessary to ensure a fairer contribution from the coal sector.

Impact on Coal Industry

The introduction of an export tax is expected to have significant implications for Indonesia's coal producers and exporters. As one of the world's largest coal producers, Indonesia's coal industry plays a crucial role in the global energy supply chain. The new tax policy could potentially affect the competitiveness of Indonesian coal in the international market, although the government may use the additional revenue to support domestic economic initiatives or infrastructure development.

Government's Stance on Industry Opposition

Purbaya acknowledged that the decision to impose an export tax would likely face opposition from industry players. However, he maintained that the government's priority is to ensure that the coal sector contributes appropriately to state revenues. The Minister's comments suggest that the government is prepared to implement the tax despite potential pushback from the industry.