Indonesia miners seek clarity on commodity export transition policy

Indonesian Mining Association (IMA) called on the Indonesian government to provide clearer guidance on the transition process for new export governance rules covering strategic natural resource commodities, warning that uncertainty could disrupt business negotiations and market stability.

 “Clarity is needed so that negotiation processes that are crucial for companies can continue to support business sustainability and maintain market stability,” IMA Executive Director Sari Esayanti said in a statement issued on Monday.

The comments come after the government said it would delay the full transfer of coal, crude palm oil and ferroalloy exports to a newly established state-owned trading company until Jan. 1, 2027, extending a transition period originally scheduled to end in September 2026.

The policy is part of President Prabowo Subianto’s broader effort to tighten state control over exports of strategic commodities and improve oversight of export earnings.

Under the plan, exports of coal, crude palm oil and ferroalloys will gradually be routed through state trading firm PT Danantara Sumberdaya Indonesia, also known as PT DSI.

IMA said the mining industry required regulatory certainty, particularly regarding reporting obligations and the role of the Directorate General of Minerals and Coal at the Energy and Mineral Resources Ministry.

Read also: Indonesia delays full state takeover of coal, palm oil exports to 2027

The association also stressed the importance of respecting existing long-term and short-term sales contracts, saying the industry relied on contractual clarity and consistency to maintain business continuity and safeguard investments.

Indonesia is the world’s largest exporter of thermal coal and palm oil, making the policy significant for global commodity markets.

Trade Minister Budi Santoso said earlier that the transition phase would begin on June 1, 2026, with exports continuing to be carried out initially by existing exporters, although export documents would be issued under PT DSI’s name.

Chief Economic Minister Airlangga Hartarto has also said the government would exempt nickel pig iron (NPI) and some refined palm oil derivatives from the centralized export mechanism.

Industry groups and ratings agencies have warned that rapid implementation of the policy could disrupt trade flows and weaken investor confidence if not handled carefully.

Editing by Reiner Simanjuntak