Indonesia to Impose Up to 15%
Indonesia has announced a landmark decision to introduce a 7.5% to 15% export tax on gold starting in 2026. This move marks a major shift in the country’s mineral resource strategy and is expected to influence global gold supply, pricing, and refining trends. The policy is designed to boost Indonesia’s domestic gold processing ecosystem while capturing higher value from its extensive gold reserves.
Policy Structure – Higher Tax on Raw Gold, Lower on Refined Products
The upcoming export duty has a tiered structure, meaning the tax rate depends on how processed the gold is:
• Gold dore (semi-refined gold) → Higher export tax, closer to the upper 15% band
• Fully refined or minted gold bars → Lower tax, closer to the minimum rate
• Price-linked taxation → When global gold prices rise sharply, higher taxes are triggered
This structure aims to encourage companies to refine gold within Indonesia, increasing local economic activity and reducing reliance on raw gold exports.
Economic Impact – Encouraging Domestic Refining & Value Addition
Indonesia’s government plans to use this tax to strengthen the country’s refining industry. The policy is expected to:
• Increase domestic value addition by pushing miners to sell or process gold locally
• Boost local liquidity and availability of refined gold
• Create more downstream industry jobs
• Help Indonesia capture a higher share of global gold profit margins
With global gold prices frequently touching historic highs, the country aims to ensure it benefits more directly from market surges.
Industry Response – Miners Preparing for New Regulations
Large mining firms, including major gold producers, have begun assessing how the new tax will affect their operations. Some have indicated that:
• They may expand domestic sales to avoid higher export costs
• Additional investment may be required to upgrade refining capacity
• New long-term partnerships with local refiners may emerge
While the sector acknowledges challenges, many analysts believe the policy will ultimately strengthen Indonesia’s position in the global bullion market.
A Strategic Move to Reshape Indonesia’s Gold Future
Indonesia’s decision to implement a gold export tax of up to 15% from 2026 marks a strategic shift in the nation’s economic and resource policies. By prioritizing domestic processing and tying tax rates to global prices, the government aims to retain more value, increase gold circulation within the country, and build a strong refining ecosystem.
This policy could reshape Indonesia’s role in global gold markets—making it not just a major producer, but also a competitive processor of high-value refined gold.
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