Indonesia’s Strategic Shift: New Export Tax Aims to Forge a Golden Future
In a decisive move to reshape its economic landscape, the Indonesian government is finalizing a progressive export tax on gold products, set to take effect in 2026. This policy is a cornerstone of Jakarta’s broader national strategy to boost domestic value-added in its mineral industries, moving the nation up the global supply chain.
A Tiered Tax for a Transformed Industry
According to a recent parliamentary briefing by a senior Finance Ministry official, the new export levy will range from 7.5% to 15%. The structure is intentionally designed to incentivize local processing: raw and semi-processed gold products will face the higher end of the tax spectrum, while fully processed items like minted bars will be taxed at a lower rate.
Febrio Kacaribu, Director General of Fiscal Strategy at the Ministry of Finance, explained the rationale behind the policy. “The tax is designed so that higher rates are for primary and less processed products, and lower rates are for processed goods,” he stated during a parliamentary session this past Monday. The clear objective is to create a powerful economic incentive for companies to refine and manufacture gold within Indonesia’s borders, thereby capturing more value from its natural resources.
Operational Details and Broader Agenda
To illustrate the mechanism, Kacaribu gave the example of a higher tax rate being applied to “gold dore bars”—unrefined bullion that still contains impurities—compared to the lower rate for purified, minted gold bars. He also noted that global gold prices would be a determining factor in the final export tax calculation.
This gold tax initiative is part of a finalized, comprehensive mineral sector plan that has now entered its final implementation phase. Meanwhile, the government’s parallel plan to introduce an export tax on coal remains under active discussion and review, signaling a continued focus on maximizing the returns from the nation’s resource wealth.