The government\u2019s plan to impose a coal export duty is considered an\nappropriate step, particularly to increase state revenue amid the surge\nin commodity prices due to Middle East conflicts.<\/p>\n
Executive Director of the Center of Economic and Law Studies\n(CELIOS), Bhima Yudhistira, views the policy as an instrument to\noptimise the potential windfall profits from the coal sector.<\/p>\n
\u201cThe coal export duty is the right decision to increase windfall\nprofit tax from the rise in commodity prices. The levy could take the\nform of an export duty or additional corporate income tax for companies\nrecording abnormal profits,\u201d Bhima told CNBC Indonesia on Wednesday\n(25\/3\/2026).<\/p>\n
However, he emphasised that the export duty policy must be\naccompanied by production controls through adjustments to the Work Plan\nand Budget (RKAB). According to him, policy consistency is key to\nkeeping prices at premium levels in the export market.<\/p>\n
\u201cIf production is increased, it risks a supply glut and the prices\nwon\u2019t yield windfall profits,\u201d he said.<\/p>\n
Additionally, RKAB cuts are also needed as an effort to accelerate\nthe energy transition, so that funds from the windfall export duty can\nbe redirected to the 100 Gigawatt (GW) solar power plant programme.<\/p>\n
As is known, the government plans to apply a coal export duty to\nanticipate the impact of the Middle East war.<\/p>\n
Coordinating Minister for the Economy, Airlangga Hartarto, stated\nthat the policy is directed to keep the state budget deficit below 3% of\nGDP.<\/p>\n
\u201cWe are maintaining the state budget so that the deficit remains\nbelow 3% and in line with the directives from the Full Cabinet Plenary\nSession, which has been discussed with technical ministries. This is\ndone through efficiencies across various ministries and agencies. With\nthese efficiencies, the 3% deficit can be maintained,\u201d Airlangga\nrevealed during a Limited Meeting with Indonesian President Prabowo\nSubianto on Thursday (19\/3\/2026).<\/p>\n
Airlangga mentioned that the planned coal export tax is intended to\nincrease state revenue, in line with the global energy price trend as an\nimpact of the Middle East war, which has disrupted supplies of several\nenergy sources such as oil and gas.<\/p>\n
In addition, the government also plans to increase coal production\nvolume through adjustments to the Work Plan and Budget (RKAB).<\/p>\n
In the energy sector, the government is pushing for the acceleration\nof converting diesel power plants (PLTD) to solar power plants (PLTS) as\nan efficiency measure amid high oil prices. This assignment has been\ngiven to the Danantara Investment Management Agency for immediate\nfollow-up.<\/p>\n
The government is also examining a work flexibility policy through a\none-day Work From Home (WFH) scheme in every five working days.<\/p>\n
\u201cThere are savings in terms of mobility usage; the petrol savings are\nquite significant, one-fifth of what we usually spend,\u201d Airlangga\nexplained.<\/p>\n
The government is currently finalising the technical aspects of\nimplementing this policy. The WFH implementation is expected not only to\napply to Civil Servants (ASN) but also to be adopted by the private\nsector and local governments.<\/p>\n
The planned implementation of this policy is scheduled to begin after\nthe 2026 Eid al-Fitr holiday. However, the exact timing will still be\ndetermined further.<\/p>\n
\u201cWe\u2019ll see the situation later. The oil price situation, the war\nsituation. We\u2019ll follow the developing situation,\u201d he concluded.<\/p>\n
From all these policies, the government is not taking the option of\nraising fuel prices. These various steps reflect the government\u2019s\nadaptive and measured response in maintaining economic stability, while\nstrengthening the direction towards energy self-sufficiency and national\nresilience.<\/p>\n
As is known, since the end of last year, the government has planned\nto implement a coal export duty. Initially, the coal export duty was\nplanned to run from 1 January 2026. However, to date, the policy has not\nyet been implemented.<\/p>\n
Could Be Implemented on 1 April 2026<\/p>\n
Finance Minister Purbaya Yudhi Sadewa revealed that President Prabowo\nSubianto has approved the amount of the export duty for coal and nickel\ncommodities.<\/p>\n
The decision on the figure to be set will be discussed across\nministries today, Thursday (26\/3\/2026).<\/p>\n
\u201cWhat is clear is that we will decide in tomorrow\u2019s meeting. But what\nis clear is that the President has already headed towards a certain\nfigure, so there\u2019s no problem,\u201d Purbaya said during a Halal Bihalal\nevent with reporters on Wednesday (26\/3\/2026).<\/p>\n
Purbaya explained that although the exact figure has already leaned\ntowards a certain amount in line with the President\u2019s directive, the\nfinal decision will be taken after technical discussions are\ncompleted.<\/p>\n
\u201cThe President said just that amount, but the technical details must\nbe matured, because once mature, we announce it,\u201d he said.<\/p>\n
\u201cThe figure has been decided by the President, but the meeting can be\ndiscussed first, then we can issue it as what later. But what is clear\nis that the export duty will be imposed in accordance with the\nPresident\u2019s directive. It\u2019s not me who decides, you know,\u201d he added.<\/p>\n
Purbaya also acknowledged that business actors are likely not to\nfully agree with the export duty policy.<\/p>\n
\u201cThey definitely won\u2019t agree. But coal prices are very high now, over\nUS$135,\u201d he said.<\/p>\n
\u201cSo there\u2019s a certain figure that has been approved by Mr President,\nbut clearly we must discuss whether the industry can accept it, not just\nwhat they want, how much the profitability is disrupted, that\u2019s what is\ncalculated, not what the coal company leaders want. If it\u2019s them, they\ndefinitely don\u2019t want it,\u201d he explained.<\/p>\n
The same applies to coal production targets. According to him, the\n2026 RKAB coal production target will also be changed, and the\ngovernment will boost coal production this year.<\/p>\n
\u201cThe RKAB plan may be changed. But it depends on what the Ministry of\nEnergy and Mineral Resources decides later. But what is clear is that it\nwill be changed,\u201d he said.<\/p>\n
If the entire discussion process runs smoothly and reaches an\nagreement, the export duty policy has the potential to be implemented on\n1 April 2026. However, Purbaya emphasised that the implementation\u2026<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/coal-export-duty-deemed-appropriate-to-boost-state-revenue-1774522286", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }