Government to Impose Export Tax on Heavy Gold Jewellery to Curb Smuggling

The government is preparing to tighten exports of gold jewellery amid rampant avoidance of gold export duties.

Finance Minister Purbaya Yudhi Sadewa revealed that the Ministry of Finance is revising a Minister of Finance Regulation (PMK) to impose export taxes on jewellery above a certain weight threshold.

He stressed that the measure was taken after the government found indications of gold export duty avoidance through the modus operandi of changing the export form into jewellery.

“We will tighten it further by amending the Ministry of Finance regulation so that jewellery above a certain weight will also be subject to export tax,” Purbaya said at the Soekarno-Hatta Customs and Excise Office Building B Hall on Thursday (13/8/2026).

According to Purbaya, a number of exporters are suspected of exploiting a regulatory loophole by declaring gold as jewellery in order to escape the export levy that applies to gold bullion.

In fact, he said, some of the exported products do not have significant added value as jewellery and merely serve as a “wrapper” to take gold abroad.

“They outsmart the system by exporting in the form of jewellery. Sometimes the jewellery is made carelessly; the important thing is that the gold can get out. One kilogram of gold is simply stamped a little and then called a necklace,” Purbaya said.

Purbaya assessed that the trend of gold smuggling has increased recently in line with the imposition of the gold export duty. This condition indicates that there are parties trying to avoid the obligation to pay state levies.

In addition, the government also suspects that some of the smuggled gold originates from unlicensed gold mining activities (PETI).

“This is a fairly clear indication that our policy is apparently disrupting PETI activities. That is why there has been an increase in smuggling attempts as we see now,” he said.

To close this loophole, the government will tighten supervision at various exit points in Indonesia, both at airports and international ports.

Purbaya also reminded members of the public who need to take gold abroad to comply with all customs provisions and not try to hide their belongings.

“I urge you, if you do have a need to take gold abroad, do not hide it. Report it to Customs and Excise officers and fulfil all applicable provisions. It is better to ask before departing than to have to face legal proceedings,” he stressed.

This new policy signals that the government will be increasingly aggressive in closing various loopholes for export duty avoidance while also curbing gold smuggling practices that have the potential to harm state revenue.