Indonesia Plans Export Duty on Coal to Boost Downstream

Finance Minister Purbaya Yudhi Sadewa told a working meeting with the House Commission XI in Jakarta on Monday 8 December 2025 that most of Indonesia’s coal is still exported in raw form. The government intends to introduce an export duty on coal shipments.

He noted that the benchmark coal price (HBA) is projected at US$111.1 per ton for the 2025 outlook and is expected to fall to a range of US$95‑100 per ton in 2026, reflecting a sharp decline since mid‑2023. The export duty aims to raise state revenue, encourage downstream processing of coal, and support de‑carbonisation by promoting more efficient technologies.

If implemented, the duty could increase fiscal receipts and provide incentives for firms to develop higher‑value coal‑derived products. This is expected to strengthen the national industrial base while aligning the energy sector with emission‑reduction targets.