Indonesia Coal Sector: Positive policy developments

Research evidence excerpt

Indonesia Coal Sector: Positive policy developments

Global Research

15 June 2026ab

Indonesia Coal Sector Equities

IndonesiaPositive policy developments

Coal

Timothy Handerson

No gross split implementation for the mining sector Analyst

With an official public address on 8 June, the Minister of Energy and Mineral Resources timothy.handerson@ubs.com

(ESDM) assured there will be no implementation of a gross split scheme for the mining +62-21-2554 5000

sector. That may alleviate concerns about implementation of a new profit-sharing Igor Putra

scheme that would have a significant adverse impact on miners' EPS, in our view. Most Analyst

investors agree that this clarification provides a short-term breather, although most (as igor.putra@ubs.com

well as we) remain unsure if there will be other forms of intervention to the mining +62-21-2554 7033

sector. We expect the status quo to be maintained at least until end of this year, before Ivan Reynaldo Sutheja

further reviews may be done. Analyst

ivan-reynaldo.sutheja@ubs.com

More clarity on DSI as a supervisory agency +62-21-2554 7037

Media reports quoted Danantara Sumberdaya Indonesia (DSI) Chief Operating Officer Myles Allsop

Dony Oskaria ensuring that it will "not take producers' goods and become a broker who Analyst

then sells them", essentially affirming that DSI will act as a single intermediary for myles.allsop@ubs.com

+44-20-7568 1693

exports, without taking a trader position. That is very much aligned with DSI's main goal

of eliminating transfer pricing and under-invoicing practices, although the clarification Daniel Major

significantly alleviated concerns about a potential adverse price control mechanism for Analyst

compliant miners/producers. We reiterate that the current phase of DSI implementation daniel.major@ubs.com