The Indonesian Coal Export Tariff

Indonesian Finance Minister Purbaya Yudhi Sadewa issued a latest statement regarding the planned implementation of coal export tariffs, stating that technical discussions are still ongoing at the ministerial level.

It is understood that Indonesia was originally scheduled to impose a coal export tariff starting January 1, 2026, but this was postponed due to the fact that the implementation mechanism has not yet been finalized. Sadwa revealed that the proposed bill will implement tariffs using a tiered system, with rates of 5%, 8%, and 11%.

"When the coal price is below a certain level, the tax rate is 5%; when the coal price is at a medium level, the tax rate is 8%; and when it exceeds a certain threshold, the tax rate can go up to 11%. The final tax amount will depend on the coal price level." "Bloomberg quoted Sadwa as saying."

He stated that the delay in determining the relevant technical regulations is partly due to the continued opposition from some coal companies. The draft presidential decree related to this policy and law is currently still being drafted.

It is not possible to determine exactly how long it will take, as some companies are still protesting. He said, but indicated that the regulation is expected to take effect in early 2026.

Previously, Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia had stated that coal export tariffs would be imposed when market prices are high. The mining sector has assured the government that tariffs will only be imposed when market prices reach a certain level, and not when coal prices are low, in order to avoid eroding corporate profits.