Jakarta, Indonesia Sentinel — Indonesia Ministry of Energy and Mineral Resources (ESDM) plans to cut coal production in 2026 in an effort to push up global prices.
The policy was disclosed by Tri Winarno, Director General of Minerals and Coal, after a hearing with Commission XII of the Indonesian House of Representatives in Jakarta.
“We will hold back production. So there will be a reduction because coal prices have ‘collapsed’,” Tri told reporters on Nov. 13, as reported by Antara.
The ministry is considering capping national coal output below 700 million tons in 2026, though the exact target has not yet been finalized.
Tri noted that Indonesia produced 836 million tons of coal in 2024, or 117% of the government’s target of 710 million tons. Of that total, 555 million tons were exported, accounting for roughly 33–35% of global coal consumption.
Another 233 million tons were allocated to the domestic market under the Domestic Market Obligation (DMO), while 48 million tons were added to national reserves.
For 2025, Tri said coal output is expected to reach around 750 million tons, nearly 100 million tons lower than 2024’s production level.
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The planned reduction for 2026, Tri explained, is aimed at stabilizing and lifting international coal prices. “The goal is to bring prices back up. Ideally, production is high and prices are good, that’s the ideal scenario,” he said.
Indonesia’s benchmark coal price (HBA) for early November fell to $103.75 per ton, down from $109.74 per ton in the second period of October 2025.
Coal export revenues also declined sharply. Between January and July 2025, coal exports dropped 21.74% to $13.82 billion, according to data from Statistics Indonesia (BPS). In the same period in 2024, coal export revenues were recorded at $17.66 billion.
(Raidi/Agung)
