ICMA suggests tiered coal export duty based on calorific value

Friday, November 28 2025 - 07:42 AM WIB

The Indonesian Coal Mining Association (APBI) has called on the government to apply coal export duties based on calorific value, or calorific factor (CF).

APBI secretary general Haryanto Damanik said he hopes the export-duty scheme will adopt a tiered structure similar to the current coal benchmark price (HBA).

 “We want a tiering system based on CF, based on the calorific value, so it’s not a one-size-fits-all scheme,” Haryanto said during an Editor Gathering event in Jakarta on Thursday (Nov. 27, 2025).

Haryanto stressed that the association supports the government’s ongoing assessment of coal export duties by fiscal authorities. However, he warned that imposing an export duty while coal prices remain on a downward or bearish trend could put additional pressure on the domestic mining industry.

According to him, export duties should ideally be introduced when the coal market is bullish. He added that coal demand projections for next year appear moderate.

Read also : Indonesia coal miners wary of proposed export duty

 “We’re fine with the idea, but what we expect is that the duty should be applied when prices are high. Don’t apply it when prices are low, because that would jeopardize our long-term sustainability,” he said.

Earlier, the Ministry of Energy and Mineral Resources (ESDM) said coal export duties would only be imposed when prices reach a certain threshold.

Director General of Mineral and Coal Tri Winarno said the government has prepared a formula for the duties and their tariff structure, although he declined to disclose details to the public.

Tri assured that the duty would not be applied when market prices are weakening.

 “We have to calculate how the industry can remain sustainable while the state also receives optimal revenue. We should not create a situation where companies go bankrupt because of an additional financial burden,” Tri told reporters on Thursday.

He also indicated that coal export duties could be implemented as early as 2026, echoing comments from Finance Minister Purbaya Yudhi Sadewa.

 “It could be next year, it could be. But the point is, we have our calculations on what price level would trigger the duty,” he said.

Tri added that coordination with the Ministry of Finance is ongoing to ensure that coal export duties will not place excessive pressure on the mining sector.

Editing by Reiner Simanjuntak

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