Indonesia wants its mining and energy exports to go straight to the buyer’s country, without passing through an intermediary country. Energy and Mineral Resources Minister Bahlil Lahadalia gave the instruction to ministry officials on 2 November 2026, when opening the Minerba Convex 2026 conference in Jakarta. Using China as his example, he said: “If we want to send goods to China, then it goes from Jakarta straight to China.”
The instruction has not yet been issued as a regulation. Below is what has been said, what is still unclear, and what it may mean for exporters.
What the minister said
- Scope: commodities under the Ministry of Energy and Mineral Resources (ESDM), including coal, minerals and liquefied natural gas (LNG). The minister gave the same instruction to the Director General of Oil and Gas and the head of SKK Migas, and singled out LNG shipments to Japan and South Korea.
- Reason: the government says that when Indonesian commodities are sold through an intermediary country, that country records the trade as its own and collects the related tax and margin.
- Countries: the minister did not name a country. Media reports widely linked the remarks to Singapore.
- Stance: the minister has said the policy will go ahead despite objections.
It is about who books the sale, not where the ship sails
Much of this “transit” is about where a sale is recorded, not the ship’s route. The Director General of Minerals and Coal, Tri Winarno, estimated that around 50 to 60 million tonnes of Indonesian coal may be traded through Singapore, while noting that he could not yet confirm all of it comes from Indonesia.
Singapore has made a similar point about LNG. A few days before the instruction, responding to the minister’s 29 October claim that some Indonesian LNG cargoes had been re-exported, Singapore’s Ministry of Energy, Trade and Industry (METI) said LNG traded by Singapore-based companies usually moves directly from the source to the destination country without passing through Singapore, and that any re-export depends on the terms of supply contracts.
What is still unclear
- No written rule yet. We have found no ministerial regulation, decree or circular as of 13 November. On 6 November, Tri Winarno told Katadata that the ministry had not yet discussed enforcement and had no plans yet for specific rules or sanctions.
- Trading vs. physical transshipment. Analysts read the instruction as targeting the buyer of record, meaning sales invoiced through foreign trading companies, rather than the physical route of the cargo. This has not been confirmed officially.
- Containers. Nothing published so far says that containerised cargo transshipped at regional hub ports is covered.
A separate change already in force
The instruction comes alongside another reform. Under Government Regulation (PP) No. 24 of 2026, exports of coal, palm oil and ferro alloy are being brought under a state-owned export company, PT Danantara Sumberdaya Indonesia (DSI). The rules took effect on 1 June 2026, with a transition period until 31 December 2026 in which exporters still sell to their buyers but must report their transactions to DSI. Fuller implementation starts on 1 January 2027, and DSI’s exact role from then is still being clarified. Upstream oil and gas, including LNG, is excluded from this regulation.
What exporters can do now
- Meet the DSI requirements first. If you export coal, palm oil or ferro alloy, these obligations already apply and have a firm 1 January 2027 date.
- Review contracts that route sales through a trading company in another country, and ask your buyers how they would handle a direct-sale requirement.
- Keep documents consistent. Make sure the destination on your export declaration and bill of lading matches where the goods actually go.
- Don’t reroute ships yet. Wait for a written regulation from ESDM before changing shipping routes. No sanctions have been set, but the minister has made clear the policy is going ahead.
- Plan for possible cost changes. Logistics commentators have warned that strict direct-shipping requirements could raise costs on some routes.
How Translindo can help
We are following this policy closely and will update our customers when a written rule is published. If you export from Indonesia and want to review your routing or shipping documents, contact our team.
Disclaimer: This article is for general information only and is based on public statements and media reports up to 13 November 2026. The direct-shipping instruction has not been issued as a regulation and may change, and details of PP 24/2026, including DSI’s role from January 2027, are still evolving. This is not legal advice. Please confirm the current rules with the Ministry of Energy and Mineral Resources (ESDM), the Ministry of Trade, PT DSI or your legal adviser before making shipping or contract decisions.
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