APBI Warns DSI Export Policy Could Reshape Coal Trade Fundamentals

The Indonesian Coal Mining Association (APBI) believes the government’s policy mandating strategic commodity exports through PT Danantara Sumber Daya Indonesia (DSI) could fundamentally reshape the nation’s coal trade structure. APBI Executive Director Gita Mahyarani said the changes would not only affect export administration but also alter the established trading relationships between Indonesian coal producers and international buyers. ‘There will certainly be a fundamental shift. The market structure will change from a decentralised business-to-business (B2B) model to a more centralised one,’ Gita told Republika on Sunday (31 May 2026). The government, through a regulation on the Management of Strategic Natural Resource Exports, has designated PT Danantara Sumber Daya Indonesia (DSI) as the state-owned enterprise (SOE) for exporting three initial commodities: coal, palm oil, and ferro alloy. The policy enters a transition phase from 1 June 2026, during which exporters can continue operations as usual but must report all export activities to DSI. Full implementation is targeted by 1 January 2027. The government states the policy aims to strengthen export oversight, prevent under-invoicing and transfer pricing, and ensure optimal repatriation of foreign exchange earnings. However, Gita noted that global market participants may need to adjust to existing trade mechanisms. She said many international buyers select coal supplies based on specific producers’ track records, including consistent quality and calorific specifications from particular mines. ‘International buyers accustomed to relying on brand consistency and guaranteed calorific specifications from specific mines may need to adjust their due diligence processes,’ she added. Gita further highlighted potential changes in legal and commercial responsibilities if DSI becomes the official exporter on paper. ‘If the exporting entity is legally changed to DSI, this could alter the dynamics of quality claims, penalties, and legal liabilities between end-users and producers,’ she said. Therefore, APBI believes the government’s transition period should be used to clarify operational mechanisms, including the division of responsibilities between DSI and coal producers in existing international trade contracts. Gita added that clarity on contract management, product quality dispute resolution, and claims mechanisms would be crucial to maintaining market confidence in Indonesia’s coal supply amid the export scheme changes.