Government Reviews Coal Export Tax, Bahlil Emphasises Caution

Energy and Mineral Resources Minister Bahlil Lahadalia is still discussing the technical imposition of a coal export tax 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 the Economy 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 Energy and Mineral Resources and the Ministry of Finance are still discussing the technicalities. According to him, this needs to be done carefully considering that the quality of Indonesian coal is not uniform, with low-calorie coal reaching 60–70 percent, thus risking inappropriate policies. Nevertheless, Bahlil still agrees with efforts to find sources of state revenue. However, the policy must be formulated meticulously. “But I agree with the Ministry of Finance that it is important for us to find good sources of state revenue in order to face global pressures that are becoming increasingly uncertain day by day,” he said. Regarding the Work Plan and Budget (RKAB), Bahlil emphasised that there have been no changes. However, 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 objective? We must prioritise domestic interests. We want PLN, fertiliser, and then domestic industries to all be fulfilled. This is what we will do,” Bahlil said.