Wedoany.com Report-Dec.9, Indonesia will introduce an export tax on thermal coal ranging from 1% to 5% starting next year, Finance Minister Purbaya Yudhi Sadewa announced on Monday. The measure aims to boost state revenue.

As one of the world's largest thermal coal exporters, Indonesia shipped 555 million metric tons overseas last year, accounting for roughly two-thirds of its total production of 836 million tons, according to data from the Ministry of Energy and Mineral Resources.

The government is considering different tax rates based on coal quality, though specific details on the structure have not yet been released, the minister added. Earlier estimates suggest the new levy could generate approximately 20 trillion rupiah ($1.2 billion) in additional revenue in 2026.

The Indonesian Coal Miners Association welcomed the policy in principle but called for the inclusion of a reference price threshold to protect industry viability.

"With this approach, we believe the government's goal of increasing state revenue can be achieved while ensuring that the industry does not face excessive burdens, thus maintaining operational sustainability," said Hendra Sinadia, executive director of the association.

Coal export volumes have faced headwinds this year, largely due to softer demand in key markets. From January to October 2025, shipments totalled 320.47 million tons, down 4% compared with the same period last year.

The planned tax comes as Jakarta seeks new fiscal tools to support budget requirements while continuing to manage the balance between domestic energy needs and export earnings from its substantial coal resources. Officials have indicated that final details of the policy, including exact rates and implementation guidelines, will be confirmed through forthcoming regulations.