Government Prepares to Implement Coal Export Tax
Jakarta, CNBC Indonesia - The government is currently designing a policy to impose an export tax or export duty on coal. This is also in anticipation of the impact of the war in the Middle East on the economy.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the policy is aimed at keeping the state budget deficit below 3% of GDP.
“We are maintaining the state budget so that the deficit remains below 3% and in line with the directives from the Full Cabinet Session, which has been discussed with technical ministries. This is done through efficiencies from various ministries and agencies. With these efficiencies from various ministries and agencies, the 3% deficit can be maintained,” Airlangga explained during a Limited Meeting with Indonesian President Prabowo Subianto on Thursday (19/3/2026).
Airlangga mentioned that the plan to impose the coal export tax is intended to increase state revenues, in line with the trend of rising global energy prices as a result of the war in the Middle East, which has disrupted supplies of several energy sources such as oil and gas.
In addition, the government plans to increase coal production volume through adjustments to the Work Plan and Budget (RKAB).
In the energy sector, the government is pushing for the acceleration of converting diesel power plants (PLTD) to solar power plants (PLTS) as an efficiency measure amid high oil prices. This mandate has been assigned to the Danantara Investment Management Agency for immediate follow-up.
The government is also examining a policy on work flexibility through a one-day Work From Home (WFH) scheme in every five working days.
“There will be savings in terms of mobility usage, with significant petrol savings, one-fifth of what we usually spend,” Airlangga stated.
The government is currently refining the technical aspects of implementing this policy. The WFH implementation is expected not only to apply to Civil Servants (ASN) but also to be adopted by the private sector and local governments.
The planned implementation of this policy is scheduled to begin after Eid al-Fitr 2026. However, the exact timing will still be determined further.
“We’ll see the situation later. The oil price situation, the war situation. We’ll follow the developing situation,” he concluded.
From all these policies, the government is not taking the option of raising fuel prices. These various steps reflect the government’s adaptive and measured response in maintaining economic stability, while strengthening the direction towards energy independence and national resilience.
As is known, the government has planned to implement a coal export duty since the end of last year. Initially, the coal export duty was planned to take effect from 1 January 2026. However, to date, this policy has not yet been implemented.