Indonesia to Impose Gold Export Tax Up to 15 Pct Next Year

Indonesia is planning to impose an export tax of between 7.5 percent and 15 percent on gold next year, according to a senior official. 

The Finance Ministry is currently drafting a ministerial regulation on this export duty. Dorés, granules, as well as ingots, cast bars, and minted bars are set to be subject to the tax. The move aims to support the national gold supply as Indonesia tries to capture more value out of the yellow precious metal and bolster its bullion bank. 

“According to the upcoming ministerial regulation, the government will impose higher tariffs when there is a windfall of soaring gold prices,” Febrio Nathan Kacaribu, a director-general at the Finance Ministry, told lawmakers in Jakarta on Monday.

The tariffs will be progressive, depending on the global gold prices or the mineral reference prices. If gold stands between $2,800 and $3,200 per troy ounce, the tariff will stay within the range of 7.5 percent and 12.5 percent. Indonesia may raise the tariff to between 10 percent and 15 percent if the gold price tops $3,200 per troy ounce. This mechanism will let Indonesia amass higher revenue amidst a surge in prices. The mineral-rich country is also mulling lowering the tariff on more sophisticated, higher-value gold products.

“The Energy Ministry actually pitched the idea on lower tariffs for [gold] products, depending on how high they have moved up the value chain. This way, we can give an incentive to encourage the creation of more added value from our resources in Indonesia,” Febrio said.

The government is now finalizing the legal document. The Law Ministry will also make sure that the document aligns with existing policies and standards. Indonesia expects to pass it into law and implement the export tax in early 2026. Trade Minister Budi Santoso will be in charge of drafting the regulation on the benchmark price. 

Source: Jakarta Globe