Antara News·Indonesia·Monday, November 2, 2026 at 09:14 AM UTC

Bahlil opens the door to increasing coal production quotas

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Putu Indah Savitri, Cindy Frishanti Octavia

Jakarta (ANTARA) - Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia has signaled the potential for increasing coal production quotas, following an improvement in coal commodity prices.

"Coal is in a good position now; ideally, with strong prices, we should see higher production," Bahlil stated after opening the Mineral and Coal Convention and Exhibition (Minerba Convex) 2026 in Jakarta on Monday.

Bahlil, who also serves as the Energy and Mineral Resources (ESDM) Minister, explained that in determining coal production quotas and approving Work Plans and Budget (RKAB), the government considers the balance between supply and demand.

He pointed to 2025, a year when Indonesia contributed 540 million tons to the global coal trade, which totaled 1.3 billion tons that year.

"Coal prices in 2025 were at their lowest. Company profits were slim, state revenue was far from optimal, and we were aggressively opening up vast tracts of land, ultimately resulting in our resources being sold off cheaply," Bahlil said.

In response to the low coal prices, Bahlil implemented several policies, such as raising the coal benchmark price (HBA) and curbing coal production.

"This is a strategic move to manage supply and demand. Our state revenue has surged, even as production has decreased," Bahlil noted.

According to data from the Directorate General of Mineral and Coal, coal production throughout 2025 reached 817.48 million tons, while production up to July 2026 was recorded at 423.71 million tons, averaging approximately 60.5 million tons per month.

This average production level is lower than the projected average for 2025, which is approximately 68.1 million tons per month.

Nevertheless, non-tax state revenue (PNBP) from the coal commodity recorded up to August 31, 2026, reached Rp66 trillion, an increase from the Rp59 trillion recorded during the same period the previous year.

Furthermore, according to the latest data from the Ministry of Energy and Mineral Resources, coal production stands at 566.74 million tons, or 77 percent of the target.

Additionally, the realized value of coal exports reached USD 23.49 million, derived from a volume of 343.08 million tons.

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