PT Freeport devises response to government’s planned export duty on gold

PT Freeport Indonesia (PTFI) has responded to the government's plan to impose export duties on gold commodities, which is expected to take effect next year, suggesting that would be no need for export duties if their gold production is fully absorbed by domestic partners, like State-owned diversified miner PT Antam. "If Antam purchases all our production, there's no export duty. Hopefully Antam can absorb 100 percent," PTFI President Director Tony Wenas told reporters at the House of Representatives (DPR) on Wednesday, July 16, 2025.

Currently, only 50 percent of Freeport's gold output is exported, due to its purity being below 99.99 percent. The other half, with higher purity, is already purchased by Antam, Tony added. The government and Commission XI of the DPR have recently agreed to expand the country's revenue base by introducing export duties on gold and coal products.

Commission XI Chairman Mukhamad Misbakhun cited that technical implementation would follow regulations issued by the Ministry of Energy and Mineral Resources (ESDM). At present, only unrefined gold (dore bullion) is subject to export duties under Finance Ministry Regulation (PMK) No.

38/2024. Gold bars and jewelry are not yet included.

As for coal, export duties have not been applied since 2006, though royalties are still collected as part of non-tax state revenue (PNBP). Fauzi H. Amro, Deputy Chair of Commission XI, said that export duty rates will be proposed by the ESDM ministry and later formalized by the Finance Ministry through a PMK.

"We want to reinforce that ESDM ministry will set the tariffs, which will be adopted into the Finance Ministry's regulation," Fauzi said. ESDM Minister Bahlil Lahadalia said the policy will be flexibly applied. Export duties would only be levied when commodity prices are high. "If prices are good, it's fair to share the revenue with the State.

But when prices are not economical, we won't burden businesses," Bahlil said on Monday, July 14, 2025.

The government will also issue supporting regulations, including an ESDM ministerial regulation, and establish benchmark economic prices for gold and coal to determine when and how the duties should apply.