Jakarta, May 21, 2026 – President Prabowo’s move to establish an export body for several commodities, including coal, under the Daya Anagata Nusantara Investment Management Agency (Danantara) is seen as potentially prolonging coal’s use as both an energy source and a revenue stream. This policy comes amid the Indonesian Government’s repeatedly stated commitment to accelerating the energy transition.
Bhima Yudhistira, Executive Director of the Center of Economic and Law Studies (CELIOS), stated that the formation of PT Danantara Sumberdaya Indonesia as the sole manager of Indonesia’s natural resource exports is not merely intended to increase state revenue amid pressures on the state budget (APBN). This establishment should also be viewed as a government maneuver to alter the natural resource supply chain to meet domestic demand, particularly for coal and palm oil.
This is especially relevant given the plans to add 6.3 gigawatts (GW) of coal-fired power plants (PLTU) in the 2025–2034 Electricity Supply Business Plan (RUPTL) and an additional 11 GW of captive PLTUs for industrial zones, Bhima continued.
“Strictly controlled, single-gate coal exports create a disincentive for business players, risking a surge in domestic coal purchases. Indonesia will find it increasingly difficult to escape the coal lock-in trap because coal is perceived as readily available in the domestic market. The motivation to transition to renewable energy will be further hindered by costs,” Bhima emphasized.
Regarding palm oil, he added that the government aims to increase the biodiesel blend percentage to 50% starting July 1, under the pretext of substituting fuel oil (BBM). Given that Indonesian palm oil has historically been exported predominantly, the presence of this single export manager suggests that the government wants to control palm oil supply. The demand for crude palm oil (CPO) in this B50 program is estimated at 18.6 million tons.
“Ultimately, if this program continues, Indonesia will remain continuously dependent on oil, considering that both B40 and B50 will still require petroleum as a blend. Yet, the energy crisis resulting from the conflict in the Strait of Hormuz has shown how vulnerable our energy security is if we continue to rely on imported oil,” Bhima explained.
Governance and Accountability Risks
Beyond being a stumbling block to the energy transition, Bhima added that the establishment of Danantara Sumberdaya Indonesia also raises concerns about governance and accountability. The risk is that single-gate exports could actually create inefficiencies, particularly given the low level of trust in corporate governance within State-Owned Enterprises (SOEs). This creates fears of preferential treatment for business players with close ties to political parties or inner circles of power, such as easier access to export permits.
“Experience shows that centralization without transparency increases risks rather than lowering them. This scheme risks relocating the issue rather than solving it, shifting from a problem of ambiguous governance involving many private exporters into one massive SOE,” revealed Aryanto Nugroho, National Coordinator of PWYP Indonesia.
Aryanto stated that the government frequently cites Article 33 of the 1945 Constitution to justify policies related to commodity control. However, Aryanto assesses that the phrasing does not automatically imply an SOE monopoly; rather, it emphasizes the principles of accountability and the public’s prosperity in natural resource management. Reflecting on history, Indonesia has had bitter experiences with centralized commodity monopolies that lacked adequate accountability mechanisms.
“Every time an economic scheme is centralized without an equivalent accountability architecture, the risks of corruption, rent-seeking, and political capture actually intensify. The experience of the Clove Buffer and Marketing Agency (BPPC) during the New Order era, the entanglements of Bulog, and the various state trading enterprises trapped in scandals all show the same pattern: centralization without checks and balances is not a solution, but an escalation of risk,” Aryanto explained.
Internal Governance is Key
Tata Mustasya, Executive Director of Sustain, revealed that the success of establishing this export body is largely determined by governance, which, ironically, remains a major challenge within Danantara.
“Internal governance will heavily dictate whether this body achieves its goals to improve natural resource management and correct market failures. It must incorporate negative externalities—namely, the environmental and social impacts of extractive sectors such as coal and palm oil—into policy. If internal governance is flawed, it will instead lead to a government failure that carries an even greater impact than market failure,” Tata said.
Tata also noted that this body must implement the long-delayed coal export levy. Applying a coal levy as a disincentive for the commodity could generate additional revenue to fund the ambition of achieving 100 gigawatts (GW) of solar energy. This would shift financing toward green sectors and renewable energy while applying the principles of economic justice.
Media Contacts:
- Bhima Yudhistira, Executive Director of CELIOS
- Aryanto Nugroho, National Coordinator of PWYP Indonesia
- Tata Mustasya, Executive Director of SUSTAIN