Energy and Mineral Resources Minister Bahlil Lahadalia stated that production levels will be lower than in 2025, although the exact figure has not yet been determined.
Speaking to journalists at the ministry office in Jakarta, Minister Bahlil emphasized, “Yes, absolutely. We are controlling the production volume.”
The Indonesian coal price (HBA) fell to USD 103.75 per ton at the beginning of November, down from USD 109.74 at the end of October and USD 114.43 a year earlier. The decline in prices is due to supply exceeding demand. Indonesia exported 555 million tons of coal in 2024.
The country also plans to reduce production this year. Tri Winarno, Director General of Mineral and Coal, stated that production is expected to reach approximately 750 million tons by the end of 2025, around 100 million tons less than the 836 million tons produced in 2024. Tri added that production in 2026 will be kept below 700 million tons, although the final figure is still being calculated. “Production will be limited because coal prices have collapsed,” he stated.
The government will prioritize domestic market obligations (DMO) while restricting exports. Minister Bahlil noted that the DMO share for priority sectors such as electricity, fertilizer, and cement could be increased above 25%. The coal price set for power plants has remained unchanged since 2018 at USD 70 per ton. The state electricity company PLN, with an annual coal consumption of 140–160 million tons, is the country’s largest coal buyer.
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