Indonesian research group urges progressive coal export duty
SUSTAIN estimates the levy could generate Rp97.40 trillion annually, based on export volumes, coal prices and an assumed exchange rate.
Indonesia’s Yayasan Kesejahteraan Berkelanjutan Indonesia (SUSTAIN) has called for a progressive duty on coal exports to help cover the state budget deficit. In a statement on 4 November 2026, lead researcher Adila Isfandiari urged the government to issue the regulation, saying higher coal prices justified its introduction.
The group estimated potential annual revenue of Rp97.40 trillion, compared with the Finance Ministry’s plan to raise around Rp50 trillion in additional revenue. Its calculation assumes that exports account for 65 per cent of Indonesian coal production and uses an exchange rate of Rp18,000 per US dollar.
The estimate draws on the Energy and Mineral Resources Ministry’s benchmark coal price for the first period of November 2026 and a strengthening price trend that SUSTAIN linked to global geopolitical developments. The proposed duty would target exports rather than coal supplied to domestic users.
Adila also urged a review of efforts to broaden taxation on everyday retail goods, arguing that these could raise living costs and weaken household consumption. She said a progressive coal export tariff would allow revenue to rise alongside commodity prices, with additional funds available for priority spending and social protection.
