This research report, published by Transisi Bersih and authored by Muhammad Irfan Islami, analyzes the anomaly of underpricing in Indonesian coal exports. This issue is driven by bilateral market power, where major buyers (primarily China and India) hold strong bargaining power due to their ability to switch between suppliers. Additionally, domestic DMO policies encourage a “volume chasing” strategy that leads to oversupply, compounded by non-market risks like transfer pricing. To address this, the report recommends a gradual transition away from DMO, implementing windfall export taxes based on benchmark-adjusted prices, and strengthening PT Danantara Sumberdaya Indonesia (DSI) as an integrated commodity intelligence system.
