Shares of coal miners ended mostly lower ground Wednesday (May 20) following President Prabowo Subianto’s decision to control coal export through Danantara in a bid to clamp down under-invoicing and transfer pricing practices, plus day-dreaming on controlling world price of thermal coal.

Minister of finance Purbaya Yudhi Sadewa claimed of finding suspicious transfer pricing and under-invoicing committed by ten major exporters of palm oil through their affiliated entities in Singapore and other countries. 

The government, through Danantara, has established PT Danantara Sumberdaya Indonesia (DSI), which will become the sole export agency for natural resources products, starting with palm oil, coal, and ferro alloys. During the six-month transition period, exporters are only required to report their activities, while transactions will be fully controlled by Danantara’s platform by January 2027. 

President Prabowo Subianto has officially announced a new policy in export of natural resources, wherein export of thermal coal, palm oil, and ferro alloys can only be done by a state-owned company assigned by the government.

On top of the national police’s involvement in corn production, Minister of defense Sjafrie Sjamsoeddin told lawmakers this week that Indonesian Army (TNI-AD) has been tasked to grow corn and rice, while the Navy is responsible for soybean. 

SGX-listed Geo Energy Resources Ltd, which operates coal mines in Indonesia, has entered into a term sheet with Resource Invest AG (ResInvest), wherein ResInvest will enter the company’s infrastructure business with a US$1.5 billion valuation.

Cita Mineral Investindo (CITA), the largest bauxite ore miner controlled by Harita Group, booked net profit of Rp288 billion in the first quarter of 2026, collapsed 72% from the corresponding period of 2025. Why?

Elevated energy prices following the Iran war led to the rise of marine fuel costs and inland transportation expenses for most companies, including palm oil producers. The war also contributed to sharp rise of fertilizer prices, particularly the compound fertilizer mostly used in oil palm plantation.

Iran war cost the State budget dearly from higher energy subsidies. While it inevitable for gasoline, diesel, and aviation fuel, given the circumstances (bigger gap between domestic production and consumption), the country should have long invested in gas pipeline infrastructure to avoid repeated crisis in cooking fuel (liquefied petroleum gas/LPG).