Indonesia signals possible rise in coal production quotas
Bahlil Lahadalia said stronger coal prices could support higher output, with supply and demand guiding government quota decisions.
Indonesia could raise its coal production quotas as prices improve, Energy and Mineral Resources Minister Bahlil Lahadalia indicated after opening the Mineral and Coal Convention and Exhibition (Minerba Convex) 2026 in Jakarta. He said higher production would ideally accompany strong prices.
Bahlil said the government assesses supply and demand when deciding output quotas and approving companies’ work plans and budgets, known as RKAB. He put Indonesia’s contribution to global coal trade in 2025 at 540 million tons, against a worldwide volume of 1.3 billion tons.
He described 2025 coal prices as being at their lowest, leaving companies with slim profits and state revenue below optimal levels. The government responded by lifting the coal benchmark price, or HBA, and limiting production. Bahlil described these policies as efforts to balance supply with demand.
Directorate General of Mineral and Coal data showed output of 817.48 million tons for 2025 and 423.71 million tons through July 2026. Coal-related non-tax revenue stood at Rp66 trillion as of August 31, 2026, up from Rp59 trillion in the equivalent period of 2025.
The Energy and Mineral Resources Ministry’s latest figures put coal output at 566.74 million tons, representing 77 per cent of the target.
