The Indonesian Ministry of Energy and Mineral Resources (ESDM) has indicated that plans to impose an export levy on coal remain under government review, even as the country moves ahead with a centralized export system for key commodities through state-linked entity PT Danantara Sumberdaya Indonesia (DSI).
Deputy Energy Minister Yuliot Tanjung said the proposed export tax on coal is being discussed separately from the government’s broader policy requiring coal exports to be channelled through PT DSI. The two measures, he stressed, fall under different regulatory frameworks and are being handled through distinct policy instruments.
As a result, the government has not cancelled the proposed coal export levy, but has effectively postponed its implementation while further evaluations are ongoing.
The same approach applies to planned adjustments in mineral royalty rates. According to Yuliot, royalty policies are governed under separate regulations and are not directly linked to the export governance reforms currently being designed.
“No, the export duty is regulated under a different framework. For royalties and other mechanisms, everything follows the existing system and its implementation is already governed by regulations,” Yuliot told reporters at the Energy Ministry office on Friday (29/5/2026).
The clarification comes after Energy and Mineral Resources Minister Bahlil Lahadalia announced a delay in the revision of Government Regulation (PP) No. 19/2025, which governs the types and tariff rates of non-tax state revenues (PNBP) within the energy and mineral sector.
Bahlil said that the proposed royalty increases previously discussed were only preliminary figures derived from internal assessments, and were not yet final policy decisions.
He added that public consultation was part of the regulatory drafting process, allowing stakeholders to provide input before finalisation.
Following feedback from industry players, the government decided to pause the planned royalty increases. However, Bahlil did not specify a new timeline for when the revised tariffs might be implemented.
“Over the past few days, we have received feedback. When there are responses that indicate adjustments are needed, we must reformulate the policy. As Minister of Energy and Mineral Resources, I will evaluate this further, and no final decision has been made,” Bahlil said during remarks at the ministry on Monday (11/5/2026).
“Therefore, I think we will pause the process to build a better formula that benefits both the state and the business sector,” he added.
Bahlil also confirmed that plans to impose export levies on nickel derivative products have been postponed as well. He emphasised that the government remains open to industry input and is working to design a formula that balances state revenue objectives with business sustainability.
In a separate clarification, Bahlil stated that the coal export levy will not take effect on April 1, 2026, as had previously been suggested by the finance ministry. He stressed that any decision regarding coal taxation would be made cautiously, particularly given current high coal prices and the structure of Indonesia’s reserves.
He noted that high-calorific coal accounts for only around 10% of Indonesia’s total coal reserves, highlighting the need for a differentiated policy approach.
Alongside tax and royalty discussions, the government is also accelerating a broader transformation of commodity export governance through PT DSI, which will manage export volumes, pricing mechanisms, and shipment arrangements for commodities including crude palm oil (CPO), coal, and steel alloys.
The reform introduces a phased implementation structure. In Phase I, running from June 1 to August 31, 2026, export processing will be divided into three stages: pre-clearance, clearance, and post-clearance.
During the pre-clearance stage, companies will continue operating under a transitional system while preparing for integration into the new export framework. In the clearance stage, state-owned enterprises (SOEs) will begin to play a more active role in export processing.
The post-clearance phase will serve as a further transition period to prepare for full operational handover to SOEs responsible for export management.
Throughout this transition period, companies will be required to gradually shift export transactions toward SOEs. At the same time, state-owned entities will prepare contracts and commercial arrangements with overseas buyers ahead of full implementation.
From September 1, 2026, the system will enter Phase II, marking full implementation of the new export governance model for strategic commodities.
Under this stage, all export procedures—including pre-clearance, clearance, and post-clearance—will be conducted on a business-to-business (B2B) basis between private exporters and state-owned enterprises.
In this fully operational framework, SOEs will assume complete responsibility for export-import transactions, including contract management with international buyers. All export authority and commercial coordination will be centralised under the designated state export entity.
The government says the overhaul is aimed at improving oversight, strengthening state control over strategic commodities, and increasing national value capture from key resource exports such as coal, nickel, and palm oil.
However, the simultaneous review of export taxes and royalties suggests that policymakers are still balancing fiscal ambitions with industry competitiveness concerns as Indonesia restructures its resource governance framework.
