JAKARTA, May 4 — Indonesia plans to introduce export duties and a windfall tax on coal and nickel as part of efforts to offset rising subsidy costs in the national budget.
ANTARA News Agency reported Finance Minister Purbaya Yudhi Sadewa as saying that the proposed measures are still under discussion with the Energy and Mineral Resources Ministry.
“Discussions are ongoing with the energy ministry, but what is clear is that the revenue will be enough to help close the subsidy gap,” he said today,
Purbaya added that coal and nickel exports have not been subject to export duties, creating loopholes that could enable under-invoicing and smuggling and limit customs authorities’ ability to inspect shipments prior to departure.
The introduction of export duties is expected to grant the Customs and Excise Directorate General greater authority to inspect goods before export, helping curb revenue leakage.
Despite the planned tax measures, he said the government remains committed to promoting downstream industrial development, particularly in the nickel-based battery sector.
Incentives are being considered for industries that utilise domestically sourced raw materials, in line with Indonesia’s broader push to strengthen value-added processing.
Separately, the government may offer tax incentives, including exemptions, for global investors placing assets in a planned financial special economic zone, or International Financial Centre (IFC), in Bali.
“If requested, I can give zero per cent. With that, zero tax is fine as long as the funds enter the financial special economic zone. That should also be linked to strengthening our foreign exchange reserves,” Purbaya said.
Inflows of global assets could support Indonesia’s bond market by increasing foreign participation in government securities.
“They can buy government bonds. If they ask for lower yields, I can provide facilities, helping ease pressure on our bonds as the investor pool expands,” he said.
The minister described the initiative as a strategic step that could be realised in the near term.
The Finance Ministry has been asked to participate in developing the IFC alongside the Coordinating Ministry for Economic Affairs and the sovereign wealth fund, Danantara.
He noted that the legal framework, including tax incentives to be applied in the financial zone, will align with international standards.
Earlier, Economic Affairs Coordinating Minister Airlangga Hartarto said the development of the Kura Kura Bali Special Economic Zone is being accelerated to serve as a potential financial hub.
The government is finalising regulations for the financial special economic zone to support a financial centre, including governance frameworks and investor-friendly facilities.