Ministry of Trade Simplifies Coal Export Permits
The Ministry of Trade has implemented deregulation of export licensing through the issuance of two ministerial trade regulations. Trade Minister Budi Santoso stated that the simplification of the export process in these regulations involves the elimination of several obligations and sanctions, as well as a reduction in documents for prohibitions and restrictions, or lartas.
“The government is carrying out deregulation and simplification of export licensing to increase ease of doing business and improve the investment climate,” said Budi in a written statement on Tuesday, 7 April 2026.
The regulations in question are Trade Ministerial Regulation (Permendag) Number 5 of 2026 concerning the Fourth Amendment to Permendag Number 23 of 2023 on Export Policy and Regulation, and Permendag Number 6 of 2026 concerning the Fourth Amendment to Permendag Number 22 of 2023 on Goods Prohibited from Export.
The simplification applies to several strategic commodities. For industrial exports, for example, the requirements for Limited Exporter (ET) status have been waived. The remaining requirements are Export Approval (PE) and Surveyor Report (LS).
The same relaxation applies to the oil and natural gas sector, which now only requires Export Approval and a Surveyor Report, down from the previous requirement of Limited Exporter status. However, the Limited Exporter requirement still applies to natural gas exports via pipeline.
Coal export requirements have also been simplified by removing the cooperation agreement requirement in applying for Limited Exporter status and the obligation to realise at least one export within two years, along with its sanctions.
The Ministry of Trade stated that this policy is accompanied by flexibility in sourcing raw materials to support downstreaming in the tin industry.
In addition, technical specification requirements for tin solder, such as limits on iron (Fe) content, dimensions, weight, and packaging methods, have been eliminated to simplify the process and increase efficiency for business actors.
The Ministry of Trade is promoting the digitalisation and automation of export licensing services through the modernisation of an integrated inter-ministerial and institutional system. One of them is the implementation of electronic and automatic issuance of Export Approvals for certain commodities such as rice and fishery products.
The export licensing system has also been integrated with the Indonesia National Single Window (SINSW) to accelerate the technical data verification process from relevant ministries and institutions.
This integration enables real-time data exchange to minimise administrative barriers and speed up the flow of export goods amid increasingly dynamic global trade demands.
Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, said the new regulations also include legal harmonisation through adjustments to nomenclature and the transfer of authority for issuing export licensing documents between agencies. “This step is expected to reduce policy overlaps and increase legal certainty for exporters,” said Tommy.
One of the main changes is the transfer of authority for issuing Natural Plants and Wildlife Transport Documents (TASL) for aquatic species from the Ministry of Forestry to the Ministry of Marine Affairs and Fisheries in accordance with Law Number 32 of 2024.
In addition, the government has restricted Export Approvals for ilmenite and rutile concentrates, which can only be applied for by holders of Mining Business Licences (IUP) and Special Mining Business Licences (IUPK) for Operations Production.
This new provision eliminates the Industrial Business Licence (IUI) requirement because these commodities are categorised as mining by-products. Adjustments have also been made to other commodities to increase regulatory certainty and effectiveness.
For example, for bird’s nest commodities, the government has changed the nomenclature of the Sanitation Certificate from code KH-12 to KH-2 in accordance with the provisions of the Indonesian Quarantine Agency.
Meanwhile, the government has limited the validity period of Export Approvals for kratom commodities to three years from the previous lifetime validity. This policy aims to ensure production capacity remains maintained and considers the economic life of machines in export business activities.
Tommy said the preparation of the regulations has gone through an inter-ministerial and institutional coordination process, including input from business associations.
This policy is expected to strengthen the performance of the national trade balance while maintaining economic stability amid global uncertainties.