New tax aims to boost domestic gold processing and secure local supply amid soaring prices
Indonesia is preparing to impose a 7.5%–15% tax on gold exports starting in 2026, aiming to maximise value added at home and ensure sufficient gold circulation for domestic investors.
New Sliding Tax Structure Based on Processing Level
The Ministry of Finance confirmed that the tax design will apply higher rates to minimally processed gold such as gold dore and lower rates to fully processed minted bars. According to Febrio Kacaribu, Director General of Fiscal Strategy, this structure encourages companies to carry out more refining activities domestically rather than exporting semi-processed products.
Gold Prices to Influence the Final Tax Rate
The policy will also be tied to global price trends. Taxes could increase when gold prices reach US$3,200 per troy ounce or higher, capturing windfall profits from mining firms. With spot gold currently trading above US$4,000 per ounce and rising more than 50% this year, Indonesia sees a strategic opportunity to secure more revenue.
Exports Surge Alongside Global Bull Run
Indonesia’s gold exports reached US$1.64 billion in the first nine months of 2025—already surpassing last year’s full-year total of US$1.1 billion. Major buyers include Singapore, Switzerland, and Hong Kong, reflecting strong global demand amid soaring prices.
Domestic Shortage Despite Huge Reserves
Despite being resource-rich and holding the world’s fourth-largest unmined gold reserves, including the Grasberg mine operated by Freeport-McMoRan’s Indonesian unit, many local investors struggle to purchase gold bars. Febrio stated that improving domestic availability is a key motivation behind the new tax.
Supporting Local Industry and Value Creation
The government aims for more gold refinement, liquidity, and circulation within Indonesia to ensure that the economic benefits are enjoyed by local consumers and investors. Febrio emphasised that increased domestic processing aligns with Indonesia’s broader industrial strategy to strengthen value-added sectors.
Coal Export Tax Still Under Review
Alongside the gold export policy, the government is also considering a separate tax on coal exports, though discussions remain ongoing with no final decision yet announced.
The upcoming export tax marks a significant shift in Indonesia’s management of its strategic gold resources. For Indonesians and Singaporean investors, this policy signals potential changes in both supply dynamics and pricing, while underscoring Jakarta’s commitment to building stronger value-added industries at home.
Sources: The Star (2025) , The Business Times (2025)
Keywords: Indonesia Gold Tax, Gold Export Policy, Febrio Kacaribu, Gold Prices, Grasberg Mine
