Indonesia plans to impose a tax of between 1% and 5% on coal exports next year, Finance Minister Purbaya Yudhi Sadewa said, as the government seeks to increase state revenues.

Indonesia is a major thermal coal exporter, with shipments reaching 555 million metric tons last year, according to mining ministry data. Purbaya said different tax rates may be applied to different coal grades, but did not provide further details. He previously estimated the export tax could generate 20 trillion rupiah (US$1.2 billion) in revenue next year.

The Indonesian Coal Miners Association said it hopes a price threshold will be included, noting this approach would support revenue goals while avoiding excessive burdens. Coal exports have been pressured by slower demand from China, falling by 4% year on year to 320.47 million tons from January to October.