Core Viewpoint - Indonesia's Ministry of Finance has established a tiered export tax system for gold, which will take effect on December 23, 2023, with rates ranging from 7.5% to 15% depending on the gold price per ounce [1][2][3]. Group 1: Tax Rate Mechanism - The tax rate will be differentiated based on the level of processing, with higher rates for lower processed gold (e.g., raw gold bars and gold ore close to 15%, while refined gold bars and high-purity gold grains around 7.5%) [3]. - The tax rates will adjust dynamically with international gold prices, meaning higher prices could lead to higher tax rates [3]. Group 2: Export Regulation - Export of gold with purity below 99% is prohibited, while gold with purity of 99% or higher (such as gold bars and grains) must submit third-party testing reports to enhance compliance [3]. Group 3: Implementation Timeline - The new export tax is set to officially start in 2026, with specific months to be determined by a ministerial regulation, and a transition period will be established to mitigate short-term impacts on businesses [3]. Group 4: Revenue Goals - The implementation of this policy is expected to generate approximately $360 million annually for Indonesia, aimed at addressing the national budget deficit in 2026 [3]. - The planned gold export tax could contribute around 30 trillion Indonesian Rupiah (approximately $1.7975 billion) to national revenue in 2026, while coal export taxes may yield 200 trillion Indonesian Rupiah (approximately $12 billion) [4].

Core Points - The Indonesian government is finalizing a new tax regime that will impose an export tax of 7.5% to 15% on gold products, set to be implemented in 2026 [1] - Different tax rates will apply based on the processing level of gold, with higher rates for unrefined products to support domestic smelting and processing industries [1] - The discussion regarding the inclusion of gold in the export tax base was initiated during a meeting on the 2026 national budget revenue, indicating a broader policy review [1] - The current regulation only requires unrefined gold to pay export duties, while refined gold bars and jewelry are exempt from these taxes [1] - The final tax rates and applicable scope will be proposed by the Ministry of Energy and Mineral Resources and confirmed through a ministerial regulation by the Ministry of Finance [1]