Indonesia in final stages of drafting coal export levy framework, eyes 5-8% rates

• Levy may apply from Jan’26 even if regulation is enacted later
• Proposed rates to be adjusted in line with benchmark coal prices

Mysteel Global: Indonesia is in the final stages of drafting regulations for a coal export levy, with the tax potentially applied retroactively from January 2026, finance minister Purbaya Yudhi Sadewa said on Wednesday, according to local media Bisnis.com.

Purbaya was quoted as saying that the legal framework for the levy, including legislative procedures and the final tariff structure, was still being finalised. He said the proposed levy would likely be set in a range of 5-8%, narrower than an earlier proposal of 5-11%, with rates adjusted in line with benchmark coal prices.

Regarding timing, Purbaya said the levy could take effect retroactively from January 2026 even if the regulation is enacted later.

“For me, yes, it is retroactive. But we will see what the final regulation says. We will discuss it further,” he said, adding that payment could be calculated from January.

The coal export levy forms part of the government’s broader efforts to strengthen fiscal revenues while aligning natural resource management with Indonesia’s energy transition agenda, Purbaya said.

Earlier, the Indonesian Coal Mining Association had warned that any tiered export levy should take price sensitivity and the long-term sustainability of the coal industry into account.

Although official full-year data have yet to be released, Indonesia’s coal exports in 2025 are expected to fall below the 555 mnt shipped abroad in 2024. Exports totalled 472.79 mnt in the first 11 months of the year, down 7.8% from a year earlier, according to data from Statistics Indonesia.

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