Indonesia targets full DSI export control from Sept 1, coal traders weigh supply risk

Indonesia's single-gate coal export mechanism will be fully implemented on September 1, President Prabowo Subianto confirmed on Monday, about four months earlier than previously planned. Market sources noted that the earlier introduction could reshape pricing and supply dynamics for the world's largest seaborne thermal coal supplier.

Speaking at a cabinet meeting on July 20, Prabowo said state-owned PT Danantara Sumberdaya Indonesia (DSI) had already processed over $10.5 billion in export proceeds since beginning operations on July 1. The pricing gap between Indonesian declared export prices and international spot levels had narrowed from an estimated 30-45%