Surprise! Here's Why Purbaya Wants to Implement the 'Fallen Durian' Tax

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa is prepared to implement a tax on ‘fallen durian’ profits in certain industries, commonly known as windfall profit tax. The initial target is the nickel commodity.

The imposition of windfall tax on the mining and nickel management sector will be accompanied by the introduction of export duties.

Purbaya explained that the primary objective of implementing export duties is to eradicate underinvoicing practices. According to him, the zero per cent export levy has opened loopholes for unscrupulous exporters.

“So far, for coal exports, because there is no tax, no export duty, customs cannot inspect before the goods depart. So underinvoicing there is very significant; we could say we have no control,” Purbaya told reporters, quoted on Tuesday (5/5/2026).

According to Purbaya, with the introduction of export duties, the Directorate General of Customs and Excise can re-inspect export goods to prevent underinvoicing leaks and even illegal export smuggling.

“That’s the main point. Of course, the export duties will also apply. But the main thing is for me to control so that underinvoicing is managed and illegal exports can be controlled,” he said.

Furthermore, Purbaya explained that regulations regarding export duties are currently being discussed with the Ministry of Energy and Mineral Resources.

Not only to prevent underinvoicing, the imposition of export duties plus windfall profit tax for nickel commodities is intended to compensate for the energy subsidies that the government has disbursed amid high fluctuations in world crude oil prices, due to conflicts in the Middle East.

“Clearly, it is sufficient to cover the increase in our state budget subsidies. Also for nickel, which is one of the raw materials for batteries,” he explained.

As compensation for the additional costs, Purbaya assured that incentives will be given for nickel derivative products, so that demand remains high domestically.

“We will also encourage battery industry growth here with certain incentives so that they sell. Basically, products that use domestic raw materials will get more incentives, something like that. It will still be discussed, just being discussed,” Purbaya said.