Indonesian Official Says Indonesia Plans to Impose 7.5-15% Export Tax on Gold

According to a Reuters report on November 17, a senior official from the Indonesian Ministry of Finance stated that the government is finalizing a new tax arrangement proposing an export tax of 7.5% to 15% on gold products, planned to take effect in 2026. The official revealed that differentiated tax rates will apply to gold based on processing levels, with higher rates for incompletely refined products, aiming to support the development of the domestic smelting and processing industry.

In fact, as early as July 7 this year, the issue of "including gold in the export tax base" was already discussed in a meeting of the 2026 State Budget Revenue Working Committee involving the Ministry of Finance and the House of Representatives Commission XI. Febrio Nathan Kacaribu, Director of Fiscal and Economic Strategic Policy at the Ministry of Finance, stated at the time that the policy to expand the coverage of export taxes was "under internal review." He added that global gold price trends would also be a key reference factor in determining the export tax rates.

According to the current Indonesian Ministry of Finance Regulation No. 38/2024, only unrefined gold is subject to export tax, while refined gold bars and gold jewelry are currently not within the scope of the export tax. The future new gold export tax rates and scope of application will be proposed by the Ministry of Energy and Mineral Resources and ultimately determined by a Minister of Finance Regulation (PMK).