Gold Export Tax: Government Efforts to Promote Downstream Processing and Added Value in Fiscal Policy
By: Devi Ariani )*
The gold export tax policy, which has resurfaced in national economic discourse, reflects the government’s serious efforts to strengthen downstream processing and increase domestic added value. To date, most Indonesian mining commodities are exported in raw or semi-finished form, resulting in significant potential profits being enjoyed by processing industries abroad. By imposing a gold export tax, the government aims to encourage businesses to reconsider their production strategies and focus more on domestic processing and refining. This measure aims not only to increase fiscal revenue but also to strengthen the foundation of the national industry to be more competitive in the global market.
Febrio Kacaribu, Director General of Fiscal Strategy at the Ministry of Finance, confirmed that the government will impose a gold export tax of between 7.5% and 15% starting next year, as part of a new policy currently being finalized. The policy aims to encourage downstreaming and increase the added value of gold commodities domestically. He stated that the tax rate will be adjusted based on the level of gold processing. Products containing high levels of impurities, such as gold dore, will be subject to a higher rate, while ready-to-sell gold bars will be subject to a lower rate.
The gold export tax is not a restrictive restriction, but rather a regulated fiscal instrument designed to create a healthier and more focused industrial ecosystem. Commodities like gold have high value and complex supply chains, so regulation is necessary to ensure optimal economic benefits for the country. An export tax will encourage gold producers to conduct further processing domestically, including refining, jewelry production, and other derivative products with higher sales value. This policy is expected to be the starting point for the transformation of the national gold industry into a more advanced phase.
On the other hand, this regulatory change is also intended to strengthen state revenues amidst uncertain global economic dynamics. Export taxes are a fiscal instrument that can help maintain state budget stability, especially when commodity prices on the global market are rising. By optimizing potential revenue from the mining sector, the government can allocate funds for strategic development programs, such as economic diversification, development of mining-producing regions, and investment in renewable energy. Thus, this policy serves a dual purpose: encouraging industrial restructuring while strengthening the country’s fiscal resilience.
The gold export duty policy, which will be implemented in 2026, is a crucial step in restructuring the national gold industry. The gold sector has experienced rapid growth but is not tied to domestic interests. Rizal explained that the export duty serves as an instrument to restore the country’s bargaining position in the gold value chain. Furthermore, this policy is also seen as an effort to reduce illegal export practices that have been detrimental to the country. By tightening regulations and imposing a more structured export tax, the government can strengthen oversight mechanisms for the gold distribution chain, from mining and refining to international shipment. This strengthened regulation is considered crucial to closing loopholes often exploited by certain individuals to manipulate production and export data. With a more transparent and controlled system, the integrity of the mining sector can be further improved.
The government’s plan to impose an export duty on gold dore, granules, cast bars, and minted bars is an effort to encourage downstream natural resource development. At the same time, downstream gold industry development has the potential to create new jobs in the mineral-based manufacturing sector. As the processing and refining industry grows, demand for skilled labor in metallurgy, jewelry design, and mineral processing technology will increase. Supporting industries such as logistics, security, and financial services will also benefit from the development of the national gold supply chain. In other words, this export tax policy is not only about increasing state revenue, but also a long-term investment in human development and increasing the value of the domestic economy.
Amid increasingly fierce global economic competition, Indonesia needs to develop a comprehensive strategy to move beyond being a mere supplier of raw materials. Developed countries have long utilized fiscal policy to encourage domestic innovation and industrialization. Therefore, the imposition of a gold export tax should be viewed as a strategic step to position Indonesia alongside countries that have successfully utilized their mineral wealth. The government needs to ensure this policy is implemented with proper oversight and supported by the readiness of downstream industrial infrastructure so that its benefits can be truly felt.
Ultimately, the success of the gold export tax policy depends on collaboration between the government, industry players, and the public. The government must consistently improve mining governance, increase supply chain transparency, and ensure that fiscal policy is truly directed towards the long-term national interest. Industry players are expected to adapt to regulatory changes and view downstreaming as an opportunity, not a threat. With effective synergy, Indonesia can optimally utilize its mineral wealth and establish the gold sector as a vital pillar of sustainable economic development.
)* Media Contributor and National Economic Policy Observer
