Jakarta. Indonesia is racing to finalize a coal export levy for April rollout, seeking fresh revenue as soaring oil prices threaten to widen the budget deficit.

Finance Minister Purbaya Yudhi Sadewa said the policy is still being finalized and will be decided in a cross-ministerial coordination meeting, leaving uncertainty over whether the timeline will hold.

“It should be implemented on April 1 if everything is finalized tomorrow, but we still need to discuss it further in a coordination meeting,” Purbaya said in Jakarta on Wednesday.

The planned levy comes as Indonesia faces mounting fiscal pressure from higher global oil prices, which are driving up energy subsidy costs and raising the risk of a wider budget deficit. The government is seeking additional revenue sources to maintain fiscal balance.

Coal prices hovering at around $135 per ton have created what policymakers see as an opportunity to capture windfall profits from the sector. President Prabowo Subianto has reportedly given initial approval for the proposal, although the government has yet to disclose the tariff rate.

Purbaya stressed that the levy would be carefully calibrated to avoid undermining industry performance.

“At the technical level, we must assess how much their profitability would be affected. That is what we calculate, not the preferences of company leaders,” he said.

The policy is also expected to prompt adjustments in mining companies’ business plans, including their Work Plan and Budget (RKAB).

From a fiscal standpoint, the additional revenue is expected to help contain the budget deficit, which reached Rp 135.7 trillion ($8 billion), or 0.53% of GDP, as of end-February 2026. While higher than last year, the government maintains that this reflects a deliberate fiscal strategy driven by accelerated state spending early in the year.

“If revenue increases from export duties, then the deficit calculation for our budget posture will change accordingly,” Purbaya added.

Beyond coal, the government is also studying the possibility of extending similar export levies to other commodities such as nickel, as part of a broader effort to expand state revenue from natural resources.

With the 2026 budget deficit targeted at 2.68% of GDP, officials remain confident that additional measures like export duties will help keep fiscal conditions within safe limits. A final decision is expected following the upcoming coordination meeting.