Publication

Coal Export Tax: A Domestic Funding Source for Indonesia’s Energy Transition

Transisi Bersih argues that implementing a coal export tax offers substantial benefits for Indonesia’s energy transition financing and market efficiency. It provides a reliable new revenue stream (potentially USD 700million to USD5 billion annually) directly funding Net-Zero efforts. Furthermore, the tax acts as an efficient and transparent mechanism, naturally helping to stabilize and lower domestic coal prices, replacing the distortionary DMO policy. This ensures foreign buyers contribute fairly to Indonesia’s clean energy development while bolstering national fiscal and energy resilience.