RI Plans Coal Export Duty Amid Falling Prices and Industry Pressures

KBRN, Jakarta: Indonesia is set to impose coal export duties for the first time in 20 years, a policy outlined in the 2026 Draft State Budget, as industry experts say falling coal prices and declining mining wages make this the right moment to secure state revenue and stabilize the sector.

“The policy plan is outlined in the Financial Note of the 2026 Draft State Budget (RAPBN),” said Christiantoko, Executive Director of NEXT Indonesia Center, in a statement in Jakarta on Sunday, December 7, 2025, as quoted by Antara.

“It mentions policies to support optimal state revenue, including expanding the export duty base to products such as gold and coal,” he explained.

Christiantoko noted that the move aligns with current dynamics in the coal mining sector, which is experiencing a slump in commodity prices and declining wages for workers. “Pressure on the coal mining sector is evident across multiple indicators, from prices to export values and workers’ wages,” he said.

According to World Bank data, the benchmark Australian coal price on November 25, 2025, stood at USD 112.6 per ton, the lowest in 57 months since March 2021. Indonesian benchmark coal prices have also fallen 20.76 percent year-to-date.

In January 2025, the Indonesian Ministry of Energy and Mineral Resources set the maximum price at USD 124.01 per ton, dropping to USD 96.26 per ton in December. “This benchmark price serves as the basis for calculating royalties, export duties, and transactions,” Christiantoko noted.

Export values also reflect the downturn. Data from the Indonesian Central Bureau of Statistics (BPS) shows that coal exports totaled USD 2.0 billion as of September 2025, down 19.77 percent from USD 2.5 billion during the same period in 2024. ***