Indonesia is stepping up its game on the global resource stage with significant changes to its export policies and regulations. The Ministry of Energy and Mineral Resources (ESDM) has officially established the Harga Batubara Acuan (HBA) as the benchmark price for coal exports. This decision, which takes effect on March 1, 2025, is aimed at reducing Indonesia's dependency on global prices and enhancing national economic sovereignty for this strategic commodity.
Minister of ESDM, Bahlil Lahadalia, emphasized Indonesia’s pivotal role as a substantial player; the country currently contributes between 30% and 35% of the global coal market, exporting 500-550 million tons of coal annually. “For too long, our coal prices have been influenced by other countries. We need independence; we cannot allow our prices to be lower than those of other nations,” Bahlil asserted during the ministry's press conference on performance.
This move to establish HBA reflects not just economic strategy but also the necessity to maintain Indonesia's bargaining power internationally. With global coal prices having plummeted by over 20% since the start of 2025, from $125.16 to $100.01 per metric ton, the government sees this policy as a shield against market pressures. Tri Winarno, Director General of Mineral and Coal, highlighted the need for internal unity among Indonesian stakeholders: “We should not be at odds with our own country. Our competition lies with the world market, not among ourselves,” he stated.
Meanwhile, the Indonesian government is preparing another bold step—banning crude oil exports entirely, shifting the focus to domestic processing of this resource. Dadan Kusdiana, Secretary General of ESDM, noted the existing frameworks allow for immediate implementation of this ban without waiting for new regulatory measures. The export of crude oil has been positioned as counterproductive to national interests, and this decision aligns with the 2021 regulation prioritizing oil use for domestic needs.
“The regulations already clarify the priority for domestic usage,” Kusdiana explained, signaling the government's intention to retain more energy resources for local consumption and economic resilience.
Alongside these landmark regulations, amendments to the Devisa Hasil Ekspor (DHE) regulations have been launched, encapsulated in Government Regulation No. 8 of 2025. Implemented soon after the coal pricing announcement, this legislation dictates how exporters must report and repurpose revenues from natural resources export. This initiative aims to maximize DHE's contribution to Indonesia's economy, with 62.7% of export income deriving from such resources.
Susiwijono Moegiarso, Secretary of the Coordinative Ministry of Economic Affairs, elaborated on DHE's reform: “It is imperative we manage the export revenues effectively to push our national economy forward, as they account for such a significant portion of our total exports.”
The changes involve increasing the revenue percentage allocated to DHE, extending the holding duration, and allowing the use of DHE during retention periods. Non-oil and gas projects will need to retain 100% of proceeds for 12 months, ensuring long-term financial goals are met, whereas oil and gas projects will follow stricter guidelines set forth previously.
Ferry Irawan from the Coordinative Ministry specified mechanisms within the DHE framework, stating, “Exporters must supply banks or the Export Financing Agency (LPEI) with documentation verifying the usage of DHE toward payments and procurement of goods or loans.” This protocol is anticipated to strengthen the tracking of export revenues and their reinvestment domestically.
With these progressive measures, Indonesia is embarking on a path to not only secure its resources for domestic use but also to bolster its export revenues and economic independence against global fluctuations. The establishment of HBA, the export ban on crude oil, and the overhaul of the DHE regulations collectively signal the government's commitment to prioritizing national interests and families dependent on these natural resources.
While challenges lie ahead, the government's decisive actions headed by ESDM and the Coordinative Economic Office reflect a strategy to place Indonesia firmly on the map as both a responsible exporter and custodian of its natural resources, assuring the public benefit with each step taken.