HIPMI proposes flexible coal export duty scheme based on price
Jakarta (ANTARA) -
The Indonesian Young Entrepreneurs Association (HIPMI) proposes that the planned implementation of coal export duty policy be carried out flexibly with a price-based scheme to maintain a balance between state revenues and business sustainability.
General Secretary of the HIPMI Central Board and Chairman of ASPEBINDO, Anggawira, stated that the policy needs to be designed adaptively in line with global market dynamics.
“We propose the use of a progressive price-based mechanism. It should be applied flexibly following commodity cycles,” said Anggawira in Jakarta on Thursday.
According to him, this step is important so that fiscal policy does not instead pressure the competitiveness of coal exports, at a time when Indonesia has the opportunity to become a global energy supplier.
Furthermore, he said that the government indeed needs to safeguard state revenues amid geopolitical pressures and energy price volatility. However, the policy design must also consider the industry’s current conditions, which face various challenges, from price fluctuations, rising logistics costs, to demand uncertainty.
“The formulation of the policy needs to involve business actors so that it is more targeted and does not cause distortions in the field,” he stated.
Furthermore, Anggawira emphasised the importance of adjusting the Domestic Market Obligation (DMO) policy to avoid creating a double burden for industry players.
Currently, the DMO coal price for power plant needs is still pegged at around US$70 per tonne, while production costs and global market prices have increased significantly.
“If export duties are applied without DMO adjustments, there will be double pressure on business players. On the export side, export duties are imposed, while on the domestic side, prices are still capped,” he said.
For this reason, the association proposes a mechanism for gradual and realistic DMO price adjustments, or a compensation scheme that can maintain a balance between state interests and the business world.
On the other hand, Anggawira also warned that export duty policy will directly impact business margins, especially for medium and small-scale business players who are more vulnerable compared to large companies.
Several potential impacts that could arise include declining cash flow, delays in investment and exploration, and pressure on production sustainability.
In the medium term, this situation could risk affecting the national coal supply if not anticipated properly.
Nevertheless, HIPMI views this policy as also an opportunity to encourage coal downstreaming and increase domestic value added, as long as it is designed appropriately and balanced.
“Fiscal policy should strengthen that position, not weaken it,” said Anggawira.
Finance Minister Purbaya Yudhi Sadewa targets the coal export duty regulation to take effect from 1 April 2026. In addition to coal, the Government is also preparing regulations for special nickel export duties.
The export duty rates for coal and nickel commodities have actually been approved by the President. However, the policy details will be discussed again across ministries and agencies in the Coordinating Ministry for Economic Affairs.