Jakarta Targets Coal and Nickel with New Export Levies

JAKARTA, Investortrust.id — Indonesia, the world’s preeminent exporter of thermal coal and a dominant force in the nickel trade, is preparing to tighten its fiscal grip on the commodities that power the global economy. Finance Minister Purbaya Yudhi Sadewa confirmed Wednesday that President Prabowo Subianto has greenlit a plan to impose export duties on outbound shipments of coal and nickel, with an aggressive rollout scheduled for April 1.

While the final tariff structures remain under wraps ahead of an inter-ministerial summit on Thursday, the Ministry of Finance has previously floated a tiered scheme of 5%, 8%, and 11%, pegged to the turbulence of global benchmarks.

This fiscal maneuver is a calculated gamble to shore up a national budget strained by rising oil prices and a weakening currency. By taxing its most lucrative natural resources, Jakarta is attempting to redirect "windfall profits"—driven by supply disruptions in the Middle East—into the state’s coffers. For a nation that has historically struggled with a narrow tax base, these levies represent a critical "buffer" against the inflationary headwinds threatening President Prabowo’s ambitious social spending agenda.

The news sent immediate ripples through global trading floors. In London, nickel futures climbed as much as 2.7% on the LME, eventually settling up 2.1% at $17,310 a ton. Investors are betting that the added cost of doing business in Indonesia—which now accounts for more than half of the world's nickel supply—will tighten global margins for battery and stainless-steel manufacturers.

.

A Carrot for the Stick: Quota Relaxations

To blunt the impact of the new taxes, Energy Minister Bahlil Lahadalia suggested the government might reconsider its restrictive production quotas, known locally as RKAB. The RKAB is a mandatory annual production plan that miners must submit for state approval; it is the primary tool Jakarta uses to control global supply.

Earlier this year, the government had planned to slash coal output to 600 million metric tons—a sharp drop from the 790 million tons produced in 2025. However, Bahlil indicated that a "measured relaxation" of these quotas is on the table if prices remain stable. "Everything is still being coordinated with the market and the supply and demand," he stated.

Mining Resistance and Fiscal Reality

The mining industry, predictably, is bracing for a fight. Minister Purbaya acknowledged the brewing discontent among coal giants but remained steadfast, pointing to ICE Newcastle coal contracts currently hovering near $136.50 per ton. "They certainly won’t agree," he said of the mining firms. "But coal prices are exceptionally high right now. If we are pressed, we could even implement this earlier."

The urgency follows a lackluster 2025 for the sector, where national coal production fell 5.5% and export values plummeted nearly 20% to $24.48 billion. By implementing the levy on April 1, the administration hopes to reverse this revenue slide, banking on the fact that for the world’s energy and EV markets, Indonesia is simply too big to ignore.

.