Coal industry raises broader concerns over Danantara export control plan

By Cepy Setiadi

Indonesia’s coal industry is raising broader concerns over the government’s plan to route exports of strategic commodities through Danantara Sumberdaya Indonesia (DSI), warning the policy could disrupt long-established trading, financing and logistics systems in the coal sector.

DSI, a subsidiary of Danantara Indonesia established on May 18, 2026, is expected to act as a trader and export handler for commodities including coal, palm oil and ferro-alloys.

Executive Director of Indonesian Coal Mining Association (APBI) Gita Mahyarani said the policy could significantly alter Indonesia’s commodity trading system, while industry players are still awaiting clarification on its operational mechanism.

PERHAPI chairman for industrial and association relations Ardhi Ishak Koeshen said the proposal could affect a coal business model that has operated for more than 30 years.

According to Ardhi, coal producers currently maintain established customer bases and long-term supply contracts tied to financing arrangements. He said those contracts could require restructuring if exports are routed through DSI.

He also questioned whether DSI would be able to manage Indonesia’s coal export volumes of 300 million to 400 million tons annually, with estimated trade values exceeding US$18 billion.

Industry players also raised concerns over potential additional fees, more complex administrative procedures and changes to payment mechanisms currently based on letters of credit commonly used in international coal trade.

President Director of PT Ombilin Energy Ramli Ahmad said technical aspects of the proposed scheme remain unclear, including document processing and payment arrangements between miners, DSI and buyers.

Meanwhile, Director of PT Kaldera Energi Nusantara Yudhi Putro said the creation of DSI appeared aimed at generating additional revenue from natural resources outside conventional fiscal mechanisms such as export taxes or higher royalties.

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Yudhi said DSI would most likely function as a documentation or export entity under a three-party contract structure involving miners, Danantara and overseas buyers, rather than fully taking over physical trading operations.

Additional concerns were raised by F. Hary Kristiono, President Director of Ucoal Sumberdaya, who highlighted risks related to contract restructuring, trade financing and export logistics.

Kristiono questioned how existing coal sales contracts and offtake financing arrangements would be handled under the new system, warning that monopoly concerns could potentially trigger disputes at the World Trade Organization if miners invoke force majeure clauses.

“How will the pricing mechanism work? A monopoly system will not be transparent. Will it use an HBA++ pricing scheme?” he said, referring to Indonesia’s coal benchmark pricing mechanism.

Based on Indonesia’s coal export volume of around 536 million tons last year, Kristiono estimated the country currently handles around 1.5 million tons of coal exports per day, equivalent to about 23 Panamax-size vessels daily.

“That would create huge administrative work in terms of documentation and trade finance. The payment terms also remain unclear,” he said.

Kristiono also highlighted operational challenges related to transportation and logistics, noting that coal exports involve hundreds of different coal qualities and specifications, unlike palm oil exports which are more standardized.

He suggested the government adopt a gradual transition by utilizing existing marketing and trading systems operated by coal producers, while positioning DSI primarily as a supervisory or transaction-monitoring body instead of fully replacing current business structures.

Kristiono also proposed the development of a centralized digital platform to integrate export trade and administrative processes, while allowing miners to maintain production flexibility based on their feasibility studies even if coal pricing is later determined by DSI.

Industry participants said they are still waiting for detailed government explanations regarding DSI’s business model, governance structure and legal implications for existing export contracts.

Editing by Alexander Ginting