On March 25, Indonesian President Prabowo agreed to impose export taxes on coal and nickel. Indonesia's Minister of Finance stated that a windfall profit tax on coal and nickel mineral resources would be implemented as early as April 1, 2026, though the policy still requires government approval for implementation. If the windfall profit tax is enforced, it would create a compounding effect for mining companies, further increasing export costs.
Currently, due to geopolitical uncertainties, coupled with factors such as the pending approval of Indonesia's production quotas and the Ramadan period, mining companies' quotations continue to rise, with the current Q3800 FOB reported at $60/ton. In December last year, Indonesia's Minister of Finance indicated that the government planned to set coal tax rates at 1%-5%. Imposing additional export tariffs on coal would raise coal prices by $0.6–$3/ton, increasing landed costs in RMB by 5–21 yuan/ton, thereby weakening the competitiveness of Indonesian thermal coal in the Chinese market. Further attention should be paid to the implementation of the windfall profit tax and the approval status of production quotas.
On March 25, Indonesian President Prabowo agreed to impose export taxes on coal and nickel. Indonesia's Minister of Finance stated that a windfall profit tax on coal and nickel mineral resources would be implemented as early as April 1, 2026, though the policy still requires government approval for implementation. If the windfall profit tax is enforced, it would create a compounding effect for mining companies, further increasing export costs.
Currently, due to geopolitical uncertainties, coupled with factors such as the pending approval of Indonesia's production quotas and the Ramadan period, mining companies' quotations continue to rise, with the current Q3800 FOB reported at $60/ton. In December last year, Indonesia's Minister of Finance indicated that the government planned to set coal tax rates at 1%-5%. Imposing additional export tariffs on coal would raise coal prices by $0.6–$3/ton, increasing landed costs in RMB by 5–21 yuan/ton, thereby weakening the competitiveness of Indonesian thermal coal in the Chinese market. Further attention should be paid to the implementation of the windfall profit tax and the approval status of production quotas.
english
français
Deutsch
Русский
Español
العربية