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View all search resultsRI to cut coal production by nearly a quarter to lift prices
Energy and Mineral Resources Minister Bahlil Lahadalia said this year’s coal production quota would be set at around 600 million tonnes, pending a final review by the ministry’s director general.
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A barge carrying coal is seen on Oct. 31, 2023, at the dock next to the Suralaya coal-fired power plant in Cilegon, Banten. (AFP/Ronald Siagian)
T
he government is planning a sharp reduction in national coal production in 2026, setting a preliminary target of around 600 million tonnes, roughly a 24 percent cut from last year’s estimated output.
Energy and Mineral Resources Minister Bahlil Lahadalia announced the estimate for next year’s coal annual work plan (RKAB) approval on Thursday, saying the measure is intended to address an oversupply that has weakened coal prices.
He emphasized, however, that the 2026 figure is not yet final and remains under review by the ministry’s mineral and coal director general.
“The ministry’s mineral and coal director general is still calculating [the exact number], but it’s definitely around 600 million [tonnes]. It could be [slightly] less or more [than that],” Bahlil said during a press conference in Jakarta.
The proposed cut will be formalized through a revision of the 2026 RKAB for coal miners.
“Production will be reduced to ensure fair prices and to preserve these mines for our children and grandchildren. We should not manage natural resources as if everything must be exploited now,” he said.
Read also: Miners call for faster quota approvals amid rule shift
