Indonesia PMK 80/2025 — Tiered Gold Export Duty (7.5–15%)

Mechanism

PMK No. 80/2025 establishes Indonesia's first statutory gold export duty, structured as a two-variable tariff grid crossing product form against a gold-price trigger:

The reference price for the trigger is set by the Finance Ministry and updated periodically. PMK 80/2025 was signed by Minister of Finance Sri Mulyani Indrawati on 17 November 2025, promulgated and published in the State Gazette on 9 December 2025, and entered into force 14 days later on 23 December 2025.

Indonesia is the world's 6th-largest gold producer (~110 tonnes/year), with significant output from Freeport Indonesia (Grasberg), Antam (state miner), and Merdeka Copper Gold (Tujuh Bukit). The bulk of Indonesia's gold output has historically been exported as dore bullion to foreign refiners (predominantly Singapore's UBS refinery and Hong Kong), bypassing domestic refining margin. PMK 80/2025 applies pressure on miners to route dore through domestic refining channels — principally the Antam (ANTM) and PT Metalor Technologies Indonesia refineries — before export.

Relationship to hilirisasi framework

PMK 80/2025 is a fiscal instrument within Indonesia's broader hilirisasi (downstreaming) architecture, which was reinvigorated under President Prabowo Subianto's administration following the January 2025 Presidential Regulation No. 1/2025 (Hilirisasi Task Force, Keppres 1/2025). The hilirisasi template was first operationalised in minerals through the 2020 nickel ore export ban (Regulation No. 11/2019), and subsequently extended to bauxite (2023), copper concentrate (2024), and now gold (2025). The gold export duty differs structurally from the earlier commodity bans — it uses a price-linked tariff rather than outright prohibition — reflecting the government's stated desire to "balance business sustainability" with domestic supply objectives, given the significance of Freeport Indonesia's gold royalty stream to the state budget.

Downstream implications

• Domestic refiners (Antam, PT Metalor): Increased feedstock supply if miners redirect dore domestically

to avoid export duty; refining capacity utilisation improvement likely.

• Freeport Indonesia (PT-FI): As the dominant Indonesian gold producer (~60% of national output),

PT-FI bears the largest absolute duty burden; PT-FI's existing IUPK and Special Mining Licence terms may affect negotiation of duty treatment.

• ANTM.JK: Net positive via increased refinery throughput, partially offset by export duty on its

own dore production; domestic gold jewellery and electronics sector benefits from stabilised local price.

• Singapore and Hong Kong refiners: Reduced Indonesian dore inflow as cost of re-exporting rises;

may accelerate shift of Antam and mid-tier Indonesian miners toward domestic refining.

• Gold price sensitivity: The $3,200/oz trigger creates a cliff-edge incentive at the threshold;

at prevailing late-2025 prices (~$2,600–2,900/oz) the lower rate band applied, but the rate steps up automatically if gold prices rise without legislative amendment.

Open questions

• Whether PT-FI's Contract of Work / IUPK terms provide exemption or reduced-duty treatment for

Grasberg gold dore under existing fiscal stability clauses.

• Whether PMK 80/2025 will be amended to include minted gold bars and jewellery-grade alloys in

a future extension, as has occurred with earlier hilirisasi instruments.

• Whether the $3,200/oz trigger will be indexed or remain fixed, creating divergent treatment as

global gold prices trend.