Indonesia plans to impose export duties and a windfall tax on coal and nickel as part of efforts to help ease the burden of rising subsidies in the state budget (APBN), Finance Minister Purbaya Yudhi Sadewa said on Monday.
“Oh yes, there will be (export duties and a windfall tax). But this is still being coordinated with the Ministry of Energy and Mineral Resources (ESDM). As for me, I just receive the revenue. It’s still under discussion with the Minister of ESDM, but it will be sufficient to cover the increase in our APBN subsidies,” said Purbaya during a media briefing in Jakarta.
A windfall tax is an additional tax imposed by the government on companies or specific industries that experience sudden large profits due to external conditions.
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However, Purbaya has not yet disclosed the tax rate, as the regulation is still in the drafting stage and under inter-ministerial discussion.
He explained that coal and nickel exports currently face no export duties, creating loopholes that can enable under-invoicing and smuggling.
“Because the tax is zero, there are no export duties, Customs cannot inspect the goods before shipment. So under-invoicing is very significant there,” he stated.
With the implementation of export duties, it is expected that the Directorate General of Customs and Excise (DJBC) will have the authority to conduct inspections before goods are shipped.
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“I requested the introduction of export duties so that Customs can inspect goods before departure. That way, we can control leakages from under-invoicing or smuggling,” said the State Treasurer.
At the same time, the government remains committed to developing downstream industries, particularly nickel-based battery manufacturing, and is considering incentives for companies using domestic raw materials.
“I have conveyed this to the Minister of Industry. Basically, products that use domestic materials will receive greater incentives. That’s the idea. It’s still under discussion,” Purbaya said.
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