Indonesia eyes coal levy next month, output easing amid strong prices

The government is considering launching a coal export levy as early as next month while weighing a potential easing of production caps for coal and nickel, as strong commodity prices support both fiscal and market policy options.

Finance Minister Purbaya Yudhi Sadewa said late Wednesday that the levy could be introduced on April 1 if finalised, pending a cross-ministerial coordination meeting.

The move comes as higher global oil prices increase the government’s energy subsidy burden, pushing authorities to seek additional revenue. With coal prices hovering around $140 per ton, policymakers see an opportunity to capture windfall profits from the sector.

Read also : Indonesia to impose coal export levy after presidential approval, minister says

President Prabowo Subianto has given initial approval for the proposal, though the tariff rate has yet to be disclosed. Officials are also studying the possibility of extending similar levies to other commodities, including nickel.

At the same time, Energy Minister Bahlil Lahadalia said Indonesia could implement a “measured” relaxation of output quotas for coal and nickel if prices remain stable, aligning production with market conditions.

Indonesia has capped coal output at 600 million metric tons this year, down from about 790 million tons in 2025, while nickel ore quotas have been set at 260 million to 270 million tons—below estimated demand.

The dual-track approach highlights Jakarta’s effort to boost state revenue while maintaining flexibility to manage supply amid firm commodity prices.

Editing by Reiner Simanjuntak