[SMM Coal Flash] Indonesia Prepares New Tax Incentives for Coal Downstreaming

Published: Oct 05, 2026 14:47 (GMT+8)

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Indonesia’s Ministry of Energy and Mineral Resources (ESDM) is preparing a new tax incentive scheme to support coal downstreaming projects, including coal-to-methanol, DME and fuel projects. The scheme is being adjusted following the implementation of the 15% global minimum tax. ESDM Deputy Minister Yuliot Tanjung said the government could provide tax incentives of around 7% from the 22% corporate income tax rate, allowing investors to receive tax relief while maintaining an effective tax rate of 15% in Indonesia.

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