Indonesia’s Finance Minister Purbaya Yudhi Sadewa is exploring the possibility of imposing an export duty on coal starting in 2026. What would be the impact if this policy is implemented? Bisman Bakhtiar, Executive Director of the Center for Energy and Mining Law Studies (Pushep), stated that the proposed coal export duty policy could increase state revenue. Additionally, it would encourage compliance with the Domestic Market Obligation (DMO) and domestic utilization. “This could act as a trigger for coal downstreaming efforts, which have yet to progress smoothly so far,” Bisman told Katadata on Thursday (27/11). DMO refers to the obligation for energy and mineral companies to prioritize meeting domestic demand before exporting their products.

However, imposing a coal export duty could increase expenses and burdens for businesses, potentially making Indonesian coal prices less competitive. According to him, the government must calculate carefully to avoid counterproductive outcomes, especially since the overall coal trade situation re...