Indonesia’s coal export duty still under discussion, start date uncertain

Indonesia’s planned export duty on coal is unlikely to take effect at the start of 2026 amid ongoing discussions over rates and resistance from industry players.

Finance Minister Purbaya Yudhi Sadewa said on Dec. 31 that the government had yet to finalise the export duty, including the tariff structure, as deliberations were still under way.

“That (export duty) is still under discussion in terms of the rate,” Purbaya told a press conference. “It is still being discussed.”

Purbaya said the government was continuing to consolidate efforts to draft a presidential regulation governing the levy, adding that objections from business groups had yet to be resolved.

Read also: Indonesia’s coal export value drops 20.25% in January–October 2025

“This is still being discussed at the technical level. The presidential regulation is in the process of being drafted, so I can’t yet confirm what the exact rate will be,” he said. “Some parties are still protesting. We may level it out going forward. It could also be applied retroactively.”

The proposed export duty would be linked to global coal prices and the type of coal sold. Indonesia classifies coal into four categories based on gross as received (GAR) calorific value, which determine benchmark prices known as HBA, HBA 1, HBA 2 and HBA 3.

Purbaya said the rates under discussion ranged between 5% and 11%, depending on coal price levels.

“If I’m not mistaken, what’s being proposed depends on the coal price,” he said. “Below a certain price it would be 5%, above that it would be 8%, and at higher price levels it would be 11%.”

Editing  by Reiner Simanjuntak