Indonesia Delays Windfall Taxes on Coal, Nickel Exports, Minister Says



KONTAN.CO.ID - JAKARTA, March 27 - Indonesia is delaying plans to impose windfall taxes on coal and nickel exports from April 1, its energy and mining minister Bahlil Lahadalia said on Friday.

Bahlil said his ministry and the finance ministry were still discussing the technicalities of the taxes and that they will not be implemented on April 1, as previously suggested.

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Imposing windfall taxes of Indonesia's prized commodities, of which the Southeast Asian country is a top exporter, was an option suggested by the government to rein in its budget deficit amid an ongoing conflict in the Middle East, which has sent fuel costs rising.

Indonesia had sought to tax refined nickel products including nickel pig iron.

Separately, Bahlil said fuel and liquefied petroleum gas supplies in Indonesia remain secure, but he added that people should consume fuel wisely. The conflict in the Middle East has disrupted shipments globally.

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Among the measures Indonesia has taken to maintain its financial reserves was a cut in the budgets for its ministries.

Tri Winarno, a senior official at the mining ministry, said separately on Friday that Indonesia had so far issued 580 million tons of coal mining quota and 150 million tons of nickel mining quota.