DSI must hold mining permit under new commodity export system

Indonesia's state-owned export company PT Danantara Sumberdaya Indonesia (DSI) will be required to hold a mining licence to handle exports of coal and ferronickel when the country's new single-gate export system becomes fully operational on Jan. 1, 2027, a Trade Ministry official said.

The requirement forms part of President Prabowo Subianto's plan to centralise oversight of exports of strategic natural resources, including coal, crude palm oil (CPO) and ferroalloys, through DSI, a subsidiary of sovereign wealth fund Danantara Indonesia.

"Starting Jan. 1, 2027, PT DSI will be required to hold a special production operation mining licence for transportation and sales in order to obtain registered exporter status," M. Rivai Abbas, director of industrial and mining product exports at the Trade Ministry, said on Tuesday.

Coal and ferronickel exports will continue to require registered exporter (ET) status and surveyor reports, he said. Under the new system, however, exports will be channelled through DSI, which must hold either a special production operation mining licence for transportation and sales or a transportation and sales permit.

Indonesia launched the first phase of the single-gate export policy on June 1, requiring exporters of coal, palm oil and ferroalloys to report export activities to DSI while continuing to conduct overseas sales independently during a transition period that runs until the end of 2026.

Rivai said exporters would still be allowed to ship products directly during the transition period, provided they comply with existing licensing and reporting requirements.

Danantara said last week that DSI would serve primarily as an intermediary between producers and overseas buyers rather than replace existing commercial relationships.

"Following the transition, DSI will focus on its intermediary role by facilitating and supervising export distribution, while preserving commercial relationships between producers and their trading partners," Danantara said in a statement.

The sovereign wealth fund said the model would be reviewed periodically based on the readiness of the export ecosystem and efforts to ensure fair and transparent exports free from under-invoicing.

Danantara also said existing export contracts for coal, palm oil and ferroalloy producers would remain valid after the second phase of the policy takes effect, provided there is no evidence of under-invoicing.

The government has said the new export system is aimed at improving governance of Indonesia's natural resources by preventing practices such as under-invoicing, transfer pricing and the retention of export earnings offshore.

Coal, palm oil and ferroalloys generated $66.1 billion in export revenue in 2025, accounting for nearly a quarter of Indonesia's total exports.

Editing by Reiner Simanjuntak