Purbaya Targets Maximum 5% Coal Export Duty by 2026
Mon 08 Dec 2025, 07:52 AM
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Indonesia’s Finance Minister Purbaya Yudhi Sadewa revealed that the draft export duty rate for coal will be in the range of 1%–5% in 2026.
He said the rate essentially mirrors the tariff that was applied to coal before the Job Creation Law designated the commodity as exempt from taxation.
“So I’m reverting it to that normal level. Before the Job Creation Law, the range was 1%–5%,” Purbaya said when met at the Parliament complex in Jakarta on Monday (Dec 8, 2025).
Purbaya emphasized that the tariff had been discussed with the Ministry of Energy and Mineral Resources (ESDM), allowing the government to estimate potential export-duty revenue from coal at IDR 20 trillion in 2026.
He said that through this policy of normalizing coal taxation, there would be equal treatment in taxation—addressing what he sees as an imbalance, since coal businesses often file for tax refunds when prices fall yet do not contribute export duties.
He likened the current treatment of coal exports to the government providing subsidies to the wealthy.
“It has been discussed with ESDM. They should agree because I don’t want to subsidize industries owned by rich people—if it’s net negative, we’re losing money, so that’s what we have to address,” Purbaya explained.
“So that 1%–5% should ultimately be based on value (of exports), since the per-ton value can differ. Perhaps later a certain calorific value will get a certain rate, but in the end it’s per value,” he stressed.
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