Jakarta. Indonesia is advancing a new gold export duty as part of efforts to secure domestic supply, expand the bullion-bank ecosystem, and accelerate value-added processing at home, a move that comes amid soaring global prices and declining ore reserves.

Finance Minister Purbaya Yudhi Sadewa said on Monday that Indonesia, despite being the world’s fourth-largest holder of gold reserves, available ore has been trending lower while domestic demand continues to rise. Global prices hit $4,076.6 per troy ounce in November 2025, reinforcing the government’s push to retain more gold onshore.

Purbaya previously said the government plans to impose a 15 percent gold export tax beginning 2026, a measure expected to bring in Rp 2 trillion to Rp 6 trillion in additional revenue.

“This is why we need export duties to support domestic supply,” he said during a hearing with Commission XI at the House of Representatives.

The upcoming policy will apply higher duty rates on upstream gold products compared to refined goods to encourage local downstreaming. The tariff structure will be progressive, with higher commodity prices triggering higher rates. According to the ministry, the duty will strengthen export monitoring, tighten governance across the gold sector, and widen fiscal space for the state budget.

Indonesia’s Customs Law states that export duties aim to secure domestic needs, protect natural resources, respond to sharp international price movements, and stabilize domestic prices. Authorities hope the new system will improve oversight of gold shipments, long seen as a weak spot in commodity governance.

Current Trade Ministry rules prohibit exporting gold products with purity below 99 percent. Gold at 99 percent or higher, including bars, ingots, and granules, may be exported only with a surveyor’s report verifying grade and compliance.

“This ensures every shipment is properly verified,” Purbaya said, adding that pairing these requirements with the export duty is intended to reinforce good governance in Indonesia’s gold trade.