Purbaya Calls Coal VAT Refund a Government Subsidy

JAKARTA – Finance Minister Purbaya Yudhi Sadewa said on 9 December 2025 that the coal VAT (PPN) refund resulting from the Job Creation Law amendment is effectively a government subsidy. He made the remarks during a meeting with the House of Representatives Commission XI.

The Job Creation Law reclassified coal as BKP (taxable goods), allowing companies to claim VAT (value‑added tax) input refunds linked to coal exports or deliveries exceeding output tax. Purbaya argues that this fiscal benefit functions as a subsidy and proposes an export levy (bea keluar) of 1‑5 % on coal shipments starting in 2026.

The levy is projected to generate about IDR 20 trillion in additional revenue annually while preserving the sector’s global competitiveness, which has been maintained since before 2020. The measure aims to restore the fiscal treatment of the coal industry to its pre‑law level.