TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsCoal exporters say new duty rules threaten viability, volumes
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Coal storage barges float in a yard on May 6, 2024, next to the Batanghari River in Muaro Jambi, Jambi. (Antara/Wahdi Septiawan)
T
he coal industry is bracing for heightened uncertainty and margin pressure following the introduction of a new price reference system that industry players warn will complicate pricing and erode Indonesia's export competitiveness.
Trade Ministry Regulation No. 46/2025, enacted on Dec. 17, outlines new rules for setting export price benchmarks for mining products.
It establishes a new Reference Price (HR) based on the average price across certain domestic and international commodity exchanges, which will be used to determine export duty rates, with a higher HR prompting a higher rate, much like the applicable income tax rate in many countries rises with a person’s salary.
The HR determines the duty bracket, which is then levied on the Export Benchmark Price (HPE) fixed periodically by the trade minister in coordination with other relevant ministries and agencies.
This marks a significant change from previous procedure to determine export duties.
The regulation also formally links the government’s coal benchmark price (HBA) and mineral benchmark price (HMA) to export costs.
“This new layered pricing mechanism directly inserts policy-driven costs into our export contracts,” Gita Mahyarani, acting executive director of the Indonesian Coal Mining Association (APBI), told The Jakarta Post on Monday.
