Indonesian Political, Business & Finance News

Bahlil examines technical aspects of coal export tax, emphasises caution

| Source: ANTARA_ID Translated from Indonesian | Energy
Bahlil examines technical aspects of coal export tax, emphasises caution
Image: ANTARA_ID

Jakarta (ANTARA) - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, is still discussing the technical aspects of imposing an export tax on coal with Finance Minister Purbaya Yudhi Sadewa, while emphasising caution to maintain prices and business sustainability.

“For coal exports, we have decided that, in order to be more cautious, we agree to increase state revenue but we must also be careful in imposing the export tax,” Bahlil said when met at the Office of the Coordinating Ministry for Economic Affairs in Jakarta on Friday.

He stated that up to now, including as of 1 April 2026, the policy has not been implemented because the Ministry of ESDM and the Ministry of Finance are still discussing the technicalities.

According to him, this must be done carefully considering that the quality of Indonesian coal is not uniform, with low-calorie coal reaching 60-70 percent, which risks leading to an inappropriate policy.

Nevertheless, Bahlil still agrees with efforts to seek sources of state revenue, but the policy must be formulated carefully.

“But I agree with the Ministry of Finance that it is important for us to seek good sources of state revenue in order to face increasing global pressures that no one can predict,” he said.

Regarding the Work Plan and Budget (RKAB), Bahlil emphasised that there have been no changes but his side will implement measured relaxations.

These relaxations are carried out by considering coal as the main national energy source and maintaining a balance between supply and demand, where production can be increased when prices improve and adjusted when prices fall.

“What is the goal? We must prioritise domestic interests. We want PLN, fertiliser, and then domestic industries to all be fulfilled. This is what we will do,” said Bahlil.

Previously, the Indonesian Finance Minister Purbaya Yudhi Sadewa targeted the export duty (BK) regulation for coal to take effect from 1 April 2026.

“It should be, if tomorrow it happens (meeting), then (effective) 1 April. If tomorrow it happens. Not sure yet, because I still want to hold a meeting first,” said Purbaya in Jakarta on Wednesday (25/3).

In addition to coal, the Government is also drafting regulations for special export duties on nickel.

The amount of export duties for coal and nickel commodities has actually been approved by the President. However, the details of the policy will be re-discussed across ministries and agencies (K/L) at the Coordinating Ministry for Economic Affairs.

Purbaya emphasised that he cannot yet reveal the exact amount of the export duty tariff as the technical aspects are still in the finalisation stage.

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