KOMPAS.com – The government’s plan to establish a commodity export agency under the Daya Anagata Nusantara Investment Management Agency (Danantara) is considered likely to hinder Indonesia’s energy transition ambitions.
The policy is feared to further prolong dependence on coal and fossil fuel-based energy.
Executive Director of the Center of Economic and Law Studies (CELIOS), Bhima Yudhistira, said that the establishment of PT Sumberdaya Indonesia as the sole manager of natural resource exports, including coal and palm oil, indicates that the government is still attempting to maintain domestic supplies of these commodities.
According to Bhima, the move cannot be separated from plans to add 6.3 gigawatts (GW) of coal-fired power plants in the 2025–2034 Electricity Supply Business Plan (RUPTL), as well as an additional 11 GW of captive coal power plants for industrial estates.
“Coal exports under strict centralized control create disincentives for businesses, increasing the risk of higher domestic coal supply purchases. Indonesia will find it increasingly difficult to escape the coal lock-in trap,” Bhima said in a statement on Friday (22/5/2026).
He argued that the availability of coal in the domestic market could make the transition to renewable energy even more difficult, as fossil fuels are still viewed as cheap and easily accessible.
Biodiesel feedstock
In addition to coal, the policy is also seen as linked to the government’s ambition to increase the biodiesel blend to 50 percent (B50) starting in July 2026. The government is estimated to require around 18.6 million tons of crude palm oil (CPO) to support the program.
Bhima believes the policy risks maintaining Indonesia’s dependence on oil-based energy because biodiesel still requires blending with petroleum fuel.
“In fact, the energy crisis triggered by the conflict in the Strait of Hormuz has shown how vulnerable our energy security remains if we continue depending on imported oil,” Bhima said.
Similar concerns were also expressed by National Coordinator of Publish What You Pay (PWYP) Indonesia, Aryanto Nugroho. He stated that the centralization of natural resource exports without adequate oversight and transparency could instead create new governance problems.
According to Aryanto, Indonesia’s experience shows that centralized commodity management without proper checks and balances often leads to risks of corruption and rent-seeking practices.
“Every time economic schemes are centralized without an equivalent accountability architecture, the risks of corruption, rent-seeking, and political capture actually increase,” Aryanto said.
Meanwhile, the Executive Director of Sustain, Tata Mustasya, stated that the export agency’s success would be largely determined by Danantara’s internal governance. He emphasized the importance of policies that account for the environmental and social impacts of extractive sectors such as coal and palm oil.
According to Tata, the government also needs to immediately implement coal export duties to discourage fossil fuel use. Revenue from the policy could be used to finance renewable energy development, including the goal of building 100 GW of solar power plants.
“This would create a shift in financing toward the green and renewable energy sectors,” Tata said.
Source: Kompas.com