Indonesian coal miners raise concerns over planned state controlled export system

By Romel S. Gurky

Members of the Indonesia coal mining association (APBI-ICMA) raised concerns over the government’s planned coal export governance system involving state owned export company PT Danantara Sumberdaya Indonesia (DSI) during an industry meeting held on May 25.

According to the meeting discussion, the Ministry of Trade has outlined a phased implementation of coal exports through DSI, beginning June 1, 2026.

During the first transition phase running from June 1 to Aug. 31, 2026, coal producers will remain holders of coal export permits while being required to submit reports through DSI. Export clearance and surveyor reports will continue to be handled by exporters.

Starting Sept. 1, 2026, DSI is planned to become the main export actor, with export permit verification conducted through INA Trade and Indonesia National Single Window systems. Full implementation is targeted by Jan. 1, 2027.

Read also: Coal industry raises broader concerns over Danantara export control plan

Coal industry participants raised concerns over the future role of existing coal traders and the legal responsibilities within the proposed export mechanism.

Industry participants also questioned who would act as the legal exporter, issue invoices, become the beneficiary in letters of credit, and take responsibility for coal quality under the new structure.

The discussion also highlighted concerns over pricing mechanisms, payment systems, technical coal blending capabilities, and the potential impact on benchmark coal price formation.

APBI-ICMA said it plans to collect business process flowcharts and operational input from member companies for further discussions with DSI and the government.

The association also plans to seek a formal meeting with DSI regarding implementation of the coal export governance policy.

Editing by Alexander Ginting