One policy. One state entity. Global shockwaves.
Starting June 1, 2026, no Indonesian coal shipment leaves port without passing through PT Danantara Sumberdaya Indonesia (DSI). President Prabowo Subianto announced the move in a surprise parliamentary address on May 20 — catching markets completely off guard. Within hours, the Jakarta Composite Index fell more than 3%, mining stocks slid, and the rupiah broke past 18,000 to the dollar for the first time.
The reasoning behind the move
Prabowo Subianto cited a staggering figure: over 34 years, Indonesia lost an estimated US$908 billion to under-invoicing and export price manipulation in its commodity sector. DSI is designed to be a single state-controlled export gateway for coal, crude palm oil (CPO), and ferroalloys — closing the leakage by centralizing contracts, shipments, and payments under government oversight.
The timing was everything
The DSI announcement landed as global coal markets were already heating up. Iran had blocked the Strait of Hormuz, stripping roughly 20% of global LNG supply. Japan, South Korea, and Thailand switched back to coal as an alternative energy source. Newcastle thermal coal surged to US$150 per ton on June 16 — its highest since September 2023 — before easing to around US$145 after the Islamabad Memorandum, brokered by Pakistan and signed in Versailles, was concluded on June 17.
What to watch next
The transition phase runs through August 2026. Full implementation — where DSI buys directly from miners and sells to foreign buyers — is targeted for September 2026, with January 2027 as the firm deadline. The commodity list may expand to include nickel and gold. China, Indonesia's largest coal buyer, had already filed a formal protest through its chamber of commerce before the policy took effect.
One thing is clear: Indonesia's era of free commodity exports is over.
