Indonesia is preparing to introduce export duties on major strategic commodities — including gold and coal — beginning next year as part of a national push to accelerate domestic industrialization and reduce raw-material shipments overseas, Finance Minister Purbaya Yudhi Sadewa said recently.
The policy aims to strengthen downstream processing inside the country, curb exports of strategic minerals, and expand Indonesia’s value-added manufacturing base rather than relying on raw-commodity exports.
For gold, the export duty has already been finalized and will apply starting 2026 under a progressive tariff structure ranging from 7.5 percent to 15 percent, depending on global market prices. Under the model, higher tax rates will apply during periods of elevated gold prices to capture additional windfall revenue.
The export duty on coal remains under discussion. Purbaya acknowledged that imposing a levy could reduce Indonesia’s competitiveness in the global market and potentially pressure export volumes.
“If producers try to raise their selling prices to offset the export duty, there is a risk their output will not be absorbed by the market,” he said.
Despite the risk of price volatility, Purbaya stressed that the government intends to proceed with the coal export duty starting in 2026, regardless of market fluctuations.
He added that current state revenue from coal through the royalty system remains significantly lower than revenue from the oil and gas sector. For that reason, the government believes there is still room to increase fiscal returns through export duties without harming the industry’s long-term viability.
Indonesia currently imposes export duties on selected commodities, including cocoa, leather, timber, crude palm oil (CPO) and its derivatives, as well as certain mineral metals.
