Indonesia plans to impose export tax on coal from 2026

• Indonesia’s coal exports down 8% y-o-y in Jan-May’25
• Tax to depend on price; framework under development

Mysteel Global: Indonesia is preparing to introduce a coal export tax starting from 2026, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said on July 14.

The duty collection hinges on coal prices, the minister said. When coal prices are high, the government will impost export duties, and the levy will be waived otherwise, according to a report by CNBC Indonesia. However, details relating to the imposition of the tax are still being decided, the report said.

The ESDM is currently drafting derivative regulations to determine the economic reference price that will serve as the benchmark for the duty mechanism, it noted.

Tri Winarno, Director General of Mineral and Coal at ESDM, said the technical framework will be crafted by his ministry, while the overarching fiscal policy will fall under the jurisdiction of the Ministry of Finance.

The move comes as the world’s top thermal coal exporter grapples with weaker exports and plunging prices. The latest data from Statistics Indonesia showed that the country’s coal exports fell 8% on year to 204.26 million tonnes in the first five months of 2025, as Mysteel Global reported last week.

At the same time, benchmark prices have tumbled. Mysteel’s assessment showed Indonesian 3,800 kcal/kg NAR thermal coal prices dropped 20% during this year’s first half.

The twin pressure of falling prices and volumes has dealt a blow to the country’s non-tax state revenue (PNBP). Bahlil revealed that revenue from the energy and mineral sector totalled Rp 117.11 trillion ($7.19 billion) in H1 2025, representing only 46% of the full-year target of Rp 254.49 trillion.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.