Indonesia's Coal Export Policy Set to Fundamentally Reshape Trade, Says Industry Association

Indonesia's coal trading landscape is poised for a fundamental shift as the government prepares to mandate exports of strategic commodities, including coal, through the state-owned PT Danantara Sumber Daya Indonesia (DSI). The Association of Indonesian Coal Mining (APBI) views this policy as a significant departure from the current decentralized business-to-business model.

Gita Mahyarani, Executive Director of APBI, stated that the change will not only affect export administration but also reshape trade relationships between Indonesian producers and international buyers. The policy, which begins its transition phase on June 1, 2026, with full implementation targeted by January 1, 2027, aims to enhance export supervision, combat under-invoicing and transfer pricing, and optimize the repatriation of export earnings.

However, APBI expresses concerns that global market participants will need to adapt. Mahyarani noted that many international buyers rely on the track record of specific producers, including consistent quality and calorie specifications. The introduction of DSI as a potential intermediary could disrupt these established relationships and necessitate revised due diligence processes for buyers.

Furthermore, APBI highlighted potential changes in legal and commercial liabilities if DSI becomes the official exporter on paper. This could alter negotiation dynamics for quality claims, penalties, and legal responsibilities between end-users and producers. APBI emphasizes the need for a clear operational framework during the transition period to define responsibilities and ensure market confidence in Indonesian coal exports.