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Indonesia plans limited easing of coal output cap as prices reach US$154

Energy Minister Bahlil Lahadalia said the move would allow production above the roughly 600 million tonnes targeted in the 2026 work plan.

By Maya Santos

Coal stockpiles at an industrial storage site
Photo: CNBC Indonesia

Indonesia plans to permit a limited increase in coal production beyond its 2026 target after prices reached US$154 per tonne, Energy and Mineral Resources Minister Bahlil Lahadalia said on 19 October 2026.

Speaking after a restricted meeting at the State Palace, Bahlil said the easing would allow output to exceed the approximately 600 million tonnes set out in the 2026 Work Plan and Budget (RKAB). The price he cited applied to coal with a calorific value of 6,330 kcal/kg GAR.

Bahlil said the government intended to keep the increase limited to maintain a balance between supply and demand. It also wanted to use the higher prices to bring in more foreign exchange in the near term.

Separately, he said the government would soon inaugurate an electric-vehicle battery ecosystem plant in Karawang, West Java. The operator, PT Contemporary Amperex Technology Indonesia Battery (PT CATIB), is a joint venture between Indonesia Battery Corporation (IBC) and the CBL consortium, comprising CATL, Brunp and Lygend.

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