JAKARTA – The Indonesian House of Representatives (DPR) Commission XI and the Ministry of Finance (Kemenkeu) have found themselves in a spirited debate over proposed regulations concerning the imposition of export duties on key commodities: gold and coal. This discussion is part of a broader effort to enhance state revenue.
The DPR has specifically urged the Ministry of Finance to engage in close coordination with the Ministry of Energy and Mineral Resources (ESDM) regarding the implementation of these new gold and coal export duties. This call for collaboration stems from the technical complexities inherent in these sectors.
Fauzi Amro, Deputy Chairman of DPR Commission XI, affirmed that, in principle, he agrees with the plan to collect export duties on gold and coal exports, as well as excise taxes on packaged sweetened beverages (MBDK). He believes these measures will significantly boost state revenue in 2026. Amro highlighted the urgency, noting that the Directorate General of Customs and Excise at the Ministry of Finance reported an approximately 8.5% decline in Indonesia’s state revenue from customs and excise. “Our hope is that since the sector falls under ESDM’s purview, have you communicated with them? That’s a fundamental question; we must avoid issuing a Minister of Finance Regulation (PMK) without involving the technical ministry, as they are intimately familiar with the intricacies of coal and gold,” Amro explained during a joint meeting with the Directorate General of Economic and Fiscal Strategy of the Ministry of Finance at the Senayan Parliament Complex in Jakarta, on Monday, November 17, 2025.
Concurring with this sentiment, Mukhamad Misbakhun, Chairman of DPR Commission XI, cautioned that any derivative regulations from the 2026 State Budget Law (UU APBN 2026) concerning export duties on coal and gold, including the MBDK excise, must align with prior agreements. Misbakhun emphatically stated that, as mandated, the expansion of import duties and excise taxes is to be implemented within the 2026 State Budget framework, not the 2025 budget. “This will be applied in the 2026 State Budget, not the 2025 State Budget,” reiterated the Golkar Party politician.
In response, Febrio Nathan Kacaribu, Director General of Economic and Fiscal Strategy at the Ministry of Finance, elaborated on the progress. He stated that the regulation for imposing gold export duties would be enshrined in a draft Minister of Finance Regulation (RPMK), which is currently in its finalization stage. Kacaribu confirmed that the specific gold products slated for export tariffs were proposed by the Ministry of Energy and Mineral Resources. “We have reported that the PMK for establishing the export duty on gold is nearing its final stage. Currently, the RPMK includes the imposition of export duties on dore, granules, cast bars, and minted bars,” Febrio explained during the Commission XI DPR working meeting at the Senayan Parliament Complex in Jakarta, on Monday, November 17, 2025.
Febrio outlined that the PMK for gold export duties is scheduled for promulgation in November 2025 and will take effect two weeks after its enactment. Following the issuance of the PMK, the government will prepare for its on-the-ground implementation, which includes drafting a Minister of Trade Regulation (Permendag) and a Minister of Trade Decree (Kepmendag) related to the Export Benchmark Price (HPE) for gold.
The detailed tariff for the four categories of gold products will range from 7.5% to a maximum of 15%. Febrio explained that the government has set a price-dependent range to allow the state to potentially receive a “windfall profit” as gold prices fluctuate. The lowest and highest export duty tariffs will depend on the prevailing price of dore, granules, cast bars, or minted bars. If the price is below US$3,200 per troy ounce, the lowest tariff will apply. However, if the price exceeds US$3,200 per troy ounce, the highest tariff will be imposed.
Specifically, for dore (lumps, ingots, cast bars, and other forms), the tariff will be 12.5% to 15%. Secondly, gold or gold alloys in unwrought form, such as granules and other forms (excluding dore), will incur a tariff of 12.5% to 15%. Thirdly, unwrought gold or gold alloys in the form of lumps, ingots, and cast bars (excluding dore) will be subject to a tariff ranging from 10% to 12.5%. Lastly, minted bars will face a tariff of 7.5% to 10%. “When prices increase significantly, we expect the tariff to be higher as well, leading to higher state revenue. The formulation of the Permendag and Kepmendag concerning the gold export benchmark price will then be finalized,” Febrio clarified.
The scheme for imposing import duties is not solely based on prevailing market prices. Products in their raw material form will incur higher export duties. Febrio revealed that this tariff scheme aligns with the government’s downstreaming initiatives, providing incentives for the export of processed, semi-finished, or finished products. “Granules also have a higher tariff compared to more downstream products. When the product is in the form of ingots and cast bars, the tariff is lower, especially if it has been crafted into minted bars,” Febrio concluded, underscoring the policy’s intent to encourage domestic value addition.
