Bahlil Opens Opportunity to Increase Coal Production Quota

Jakarta: Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia has opened the possibility of raising the coal production quota, as coal prices have improved.

"Coal is doing well now. Ideally, prices are good and production is high," Bahlil said when met after the opening of the Mineral and Coal Convention and Exhibition (Minerba Convex) 2026 in Jakarta, as reported by Antara on Tuesday, November 3, 2026.

Bahlil, who also serves as Minister of Energy and Mineral Resources, said that in setting coal production quotas and approving companies' Work Plans and Budgets (RKAB), the government will consider the balance between supply and demand.

He pointed to 2025, when Indonesia supplied 540 million tons of the 1.3 billion tons of coal traded globally each year.

"What happened? Coal prices in 2025 were at their lowest. Company profits were not very high, state revenue was not optimal, we opened up huge areas of land, and in the end our coal was sold cheaply," Bahlil said.

In response to the low prices, Bahlil introduced several policies, including raising the coal reference price (HBA) and cutting coal production.

"Today, coal prices can reach USD154 per ton for high-calorie coal. This is our strategy because we are managing supply and demand. Our state revenue has jumped, while production has gone down," Bahlil said.

Average coal production down this year

According to data from the Directorate General of Minerals and Coal, coal production throughout 2025 reached 817.48 million tons, while production up to July 2026 stood at 423.71 million tons, or an average of about 60.5 million tons per month.

This average is lower than the 2025 average of around 68.1 million tons per month.

However, non-tax state revenue (PNBP) from coal up to August 31, 2026, reached Rp66 trillion, up from Rp59 trillion in the same period last year.

Based on the latest data from the Ministry of Energy and Mineral Resources, coal production has reached 566.74 million tons, or 77 percent of the target. Meanwhile, coal exports were worth USD23.49 million from 343.08 million tons.

"So we set the RKAB for the coal sector by considering supply and demand. Ideally, our production is high and prices are good. Ideally," Bahlil said.

(Yaumil Tianri Rahmi)