Export Tax on Coal Introduced to Offset Rising VAT Refunds

Jakarta, Finance Minister Purbaya Yudhi Sadewa announced the government's plan to impose an export tax on coal starting in 2026. The measure follows a sharp increase in VAT (value‑added tax) refunds claimed by coal exporters.

Amendments to the VAT law under the Omnibus Law reclassified coal from an exempt item to taxable goods (BKP), raising annual VAT refunds to roughly Rp25 trillion. From January to October 2025, total tax refunds reached Rp340.52 trillion, a 36.4% rise, with corporate income tax refunds of Rp93.8 trillion and VAT refunds of Rp238.86 trillion (up 23.9%).

The export tax is intended to compensate the revenue loss and help close the 2026 state budget (APBN) deficit. Authorities state the levy will not diminish the global competitiveness of Indonesia's coal sector.