Indonesia plans to impose a 25 percent export tax on coal and base metals, rising to 50 percent in 2013, according to media reports.
A senior official at Indonesia's Ministry of Energy and Mineral Resources stated that in February the ministry announced a possible mining ban to be implemented in 2014, leading the mining industry to ramp up production and export as much as possible before 2014. Considering the output boom as a threat, the government now seeks to curb output by introducing an export tax.
No exact date has been given for the entry into force of the export tax.
On the other hand, India has raised concerns about the possible negative impacts of Indonesia's export tax, stating that it will raise imported coal costs.