PravadaNews – The government’s policy requiring coal exports to be conducted through PT Danantara Sumberdaya Indonesia (DSI) is expected to significantly impact Indonesia’s coal export performance.
As is widely known, coal is one of the commodities included in the government’s centralized export policy, alongside crude palm oil and ferroalloys, all of which will be exported through PT Danantara Sumberdaya Indonesia (DSI).
Aryanto Nugroho, Coordinator of Publish What You Pay (PWYP) Indonesia, stated that the policy would have far-reaching consequences for Indonesia’s coal exports.
He explained that a single-channel export system would not only affect administrative processes but would fundamentally alter export contracts, financing arrangements, and logistics mechanisms.
“The biggest threat is the risk of logistical paralysis or bottlenecks downstream,” Aryanto said in an interview with PravadaNews on Wednesday (June 3, 2026).
According to Aryanto, the short-term impact during the transition period from June 1 to December 31, 2026, is designed to remain limited. Coal exports will continue as usual, but companies will be required to report their activities and list DSI as a co-exporter.
However, starting on January 1, 2027, DSI will act as the sole exporter. All critical processes—including contracts, customs clearance, transportation, and payment mechanisms—will be fully controlled by DSI.
“This is a massive structural change, and this is where our greatest concern lies: operational feasibility,” he said.
Aryanto emphasized that the government must take an honest look at the anatomy of Indonesia’s coal supply chain. The export ecosystem has been built gradually over decades and cannot be reorganized overnight.
The first challenge lies in the supply side. Coal production comes from more than 500 mining concessions across Sumatra and Kalimantan. Each mine produces thousands of quality variations based on calorific value, ash content, sulfur levels, and moisture content.
Every cargo shipment results from highly precise quality control and blending processes, as power plants in Japan, India, South Korea, and China each require different specifications.
These blended coal products are distributed through approximately 40,000 barge voyages annually to more than 200 ports and anchorage points, involving over 7,000 ocean-going vessels.
DSI will be expected to manage four highly complex areas simultaneously: document administration (letters of credit, customs procedures, and port authorities), coordination with third parties (independent surveyors, shipping agents, and insurance providers), commercial activities (global tenders and FOB/CIF contracts), and strict scheduling to minimize demurrage risks caused by delays.
“The honest question that the government must answer is this: can DSI, as a newly established entity, effectively facilitate all of this physical and administrative complexity through a single narrow gateway with only seven months of preparation?” he asked.
He further noted that Indonesia’s reputation as a reliable global supplier—accounting for 33–35 percent of global coal consumption, with export volumes reaching 555 million tonnes in 2024 and an estimated 500–510 million tonnes in 2025—has been built on operational certainty across every link of the supply chain.
“If DSI’s system is not as fast and flexible as the market mechanisms that have long been managed by private actors, the consequences could be severe. A disruption at just one point—for example, poor vessel scheduling leading to demurrage charges—could trigger a domino effect that significantly hampers export flows,” he concluded.
Source: PravadaNews.com