Indonesia centralizes coal and palm oil exports under state control from June
The Indonesian government launched a new state-controlled export management system for coal, palm oil, and ferroalloys in June. Danantara Sumberdaya Indonesia (DSI), a state-owned enterprise and subsidiary of the government-backed investment company Danantara, has been appointed as the managing entity.
This year will serve as a transitional period before the new system is fully implemented in January 2027. In the future, DSI could become the sole export marketing channel for these commodities. At present, however, the focus appears to be on strengthening export oversight, while existing export sales practices remain largely unchanged. In the coal sector, for example, producers continue to conclude export contracts directly with buyers.
The administration of President Prabowo Subianto decided to introduce the new system after concluding that Indonesia's national interests had been significantly undermined by practices such as exports conducted under inappropriate contract prices and the underreporting of export volumes. Indonesia is the world's largest exporter of both palm oil and coal.