ESDM Continues to Discuss Coal Export Duties Despite DSI Export Plans

The Ministry of Energy and Mineral Resources (ESDM) is still discussing coal export duties despite the government’s plan to export coal through PT Danantara Sumberdaya Indonesia (DSI). “The export duty is a separate regulation. Therefore, matters related to royalties and this (export duty) will follow the existing system,” said Deputy Minister of ESDM Yuliot during an interview at the ESDM Ministry office in Jakarta on Friday. The coal export duty was initially set to take effect on 1 January 2026. Finance Minister Purbaya Yudhi Sadewa considered the policy part of the government’s effort to improve natural resource governance for greater national and public benefit. According to Purbaya, the coal export duty is needed to offset the large value-added tax (VAT) refunds from the industry, which have been adding pressure on fiscal capacity. However, the government is still discussing the coal export duty. In addition to coal, discussions on applying royalties and export duties for mineral commodities are ongoing between the ESDM and Finance Ministries. The royalty and export duty policy for mineral commodities, originally planned for June 2026, has been agreed to be postponed by ESDM Minister Bahlil Lahadalia and Finance Minister Purbaya Yudhi Sadewa. The postponement is to allow further discussion in response to a weakening of the Jakarta Composite Index (IHSG). Subsequently, President Prabowo Subianto announced at a plenary session of the DPR RI at the Nusantara Building, MPR, DPR, DPD RI complex in Jakarta on Wednesday (20/5) that the government has issued a Government Regulation (PP) on Natural Resource Commodities Export Governance. The government also established PT Danantara Sumberdaya Indonesia (DSI) as a specially designated company to manage and oversee transactions for strategic natural resource exports. DSI will operate in two phases. In the first phase from 1 June to 31 December 2026, it will act as an evaluator and intermediary between sellers and buyers of specific export commodities. In the second phase, starting January 2027, DSI will purchase commodities from domestic exporters before selling them on international markets.