Indonesia's finance minister announces plans for new export levies and windfall taxes on coal and nickel to boost state revenues and combat smuggling, while promising incentives for domestic downstream industries.
Indonesia is preparing to introduce export duties and a windfall tax on its coal and nickel sectors to help offset growing subsidy costs in the national budget, Finance Minister Purbaya Yudhi Sadewa announced on 4 May 2026.
The minister explained that both commodities currently face zero export duties, which has created opportunities for under-invoicing and smuggling activities. By implementing export duties, customs officials will gain the authority to inspect shipments before they leave the country.
The windfall tax—a levy on companies earning exceptional profits from favourable market conditions—is still being finalised through discussions with the Ministry of Energy and Mineral Resources. Specific tax rates have not yet been disclosed.
Purbaya also indicated that companies utilising domestic raw materials, particularly in nickel-based battery manufacturing, could receive enhanced incentives.
The finance minister said products using domestic materials would receive greater incentives, though the proposal remains under discussion with the Ministry of Industry.
The dual approach aims to strengthen budget revenues while supporting value-added production within Indonesia’s borders.
