[SMM Coal Flash] ESDM Approves 95% of 2026 Coal RKAB

Coal accounted for the largest share of strategic commodity exports monitored by PT Danantara Sumberdaya Indonesia (DSI), with the overall monitored export value reaching US$25.5 billion. The monitoring forms part of Indonesia’s new strategic commodity trade governance framework, which is designed to improve transparency across export transactions and strengthen oversight of pricing, invoicing and foreign-exchange proceeds. Under the framework, DSI tracks transaction information while producers and exporters retain their commercial role in negotiating prices, specifications and contracts with overseas buyers. Coal is among the initial commodities covered by the system, alongside other strategic Indonesian exports, reflecting its significant contribution to the country’s commodity trade.

PT Danantara Sumberdaya Indonesia (DSI) CEO Luke Thomas Mahony said Indonesia’s planned coal trade governance framework will not replace the role of private companies in coal trading, with producers and exporters continuing to negotiate contracts, specifications and prices directly with buyers and manage commodity and payment flows. Instead, DSI will focus on increasing transaction transparency and visibility, linking information from initial contracts through final settlement—including pricing formulas, coal quality, premiums and discounts, vessel information and invoices—to identify potential under-invoicing or inappropriate transfer pricing. Mahony stressed that deviations from benchmarks do not automatically indicate irregularities, as legitimate commercial adjustments can reflect differences in coal quality and transaction terms. DSI also plans to establish an industry-representative methodology committee, involving producers, associations, traders and market practitioners, to help determine appropriate reference prices and legitimate adjustments around those benchmarks.

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has tightened rules on the use of subsidiaries and affiliates in mineral and coal mining services under Ministerial Decree No. 365.K/MB.01/MEM.B/2026. Under the new rules, IUP and IUPK holders must prioritise mining service companies in the areas surrounding their mining operations and cannot use subsidiaries or affiliates without approval from the ESDM Minister. The restriction covers direct shareholding links and common beneficial ownership. Exceptions apply to government-assigned activities, including National Strategic Projects, mineral processing or refining facilities, coal development or utilisation, and meeting domestic mineral and coal requirements.