ASIATODAY.ID, JAKARTA — Indonesia has officially confirmed plans to impose export duties on gold and coal beginning in 2026, following a key agreement between the Ministry of Finance and Commission XI of the House of Representatives (DPR). The policy is designed to boost state revenue, safeguard domestic supply, and accelerate downstream industrialization, particularly as the government prepares to manage a widening fiscal deficit next year.
During a Working Meeting on Monday, December 8, 2025, Commission XI accepted the Finance Minister’s detailed explanation regarding the objectives, mechanisms, and implementation strategy of the 2026 export duty framework.
Commission XI Chair Misbakhun emphasized that revenue from gold and coal export duties will be directed toward narrowing the 2026 State Budget (APBN) deficit.
He also stressed that all technical regulations must align with the Ministry of Energy and Mineral Resources (ESDM).
“The Ministry of Finance must establish clear performance indicators to ensure that export duties on gold and coal generate real added value. This is important for strengthening state revenue and ensuring secure domestic supply,” Misbakhun said.
Commission XI also urged stronger governance in the gold export ecosystem—covering trading, custody, and financing—to close regulatory loopholes and prevent revenue leakage.
Regarding coal, Commission XI noted that export duties must support national energy security, value addition, and the transition toward cleaner energy.
Government Pushes Export Duties to Optimize Revenue from the Mineral and Coal Sector
Finance Minister Purbaya Yudhi Sadewa underlined that Indonesia’s mineral and coal (minerba) sector has seen declining contributions to GDP in recent years. In contrast, downstream industries—especially basic metal processing—have grown rapidly.
Basic metal industry value added surged from IDR 168 trillion in 2022 to IDR 243.4 trillion in 2025, reflecting the success of Indonesia’s downstream transformation.
However, the government faces multiple challenges entering 2026: volatile global commodity prices, pressure to accelerate the green energy transition and the need to stabilize state revenue.
To address these challenges, Indonesia will deploy export duties as a strategic fiscal tool. The policy is consistent with Article 2A of Law No. 17/2006 on Customs, which permits the use of export duties to stabilize domestic supply and commodity prices.
Gold Export Duty: Support for Bullion Banking and National Supply Security
Indonesia—holder of the world’s fourth-largest gold reserves—faces declining domestic ore reserves as global gold prices hit a record USD 4,076.6 per troy ounce in November 2025. At the same time, the country’s bullion banking ecosystem requires more stable domestic gold supply.
“To support the development of Indonesia’s bullion bank ecosystem and ensure domestic supply, an export duty instrument is necessary,” the Finance Minister explained.
Coal Export Duty: Boosting Value Addition and Supporting Decarbonization
Coal remains vital for Indonesia’s economic stability. Despite being the world’s third-largest coal producer, the majority of its exports are still raw materials with low value-added.
Export duties are therefore prepared to: increase state revenue, accelerate downstream coal industrialization, support decarbonization efforts and strengthen long-term national energy security.
The Ministry of Finance is finalizing the technical mechanism in coordination with related ministries.
State Investment and Fiscal Strengthening
Minister Purbaya also presented updates on government investment allocation to State-Owned Enterprises (BUMN), both in cash and non-cash.
From 2010 to 2024, total government investment in BUMN and Public Service Agencies (BLU) reached IDR 897.53 trillion, aimed at strengthening public services and sustaining economic growth.
“Commission XI’s support is essential to ensure that every fiscal policy we implement has legal certainty and contributes directly to improving public services and the investment climate,” the Minister concluded. (AT Network)
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