423.71 Million Tonnes of Coal Extracted Until July 2026
The Ministry of Energy and Mineral Resources (ESDM) has recorded that total national coal production reached 423.71 million tonnes up to July 2026. The Director General of Minerals and Coal at the Ministry, Tri Winarno, stated that monthly coal production in 2026 has decreased by approximately 8 million tonnes compared to the average production in 2025.
In comparison to 2025, total national coal production reached 817.48 million tonnes. Of that total, 63.89% was allocated for export, 30.2% for domestic needs, and 5.9% was held as stock.
Of the 423.71 million tonnes produced up to July 2026, approximately 63.82% was allocated for export, 26.86% to meet domestic requirements, and 9.32% was designated as national stock.
“Our approach is optimum production, where production must be balanced with market demand, Domestic Market Obligation (DMO), price conditions, logistics, and the sustainability of reserves,” he said.
According to him, global coal demand is expected to experience a slight decline over the next five years as the use of renewable energy strengthens. However, India and the ASEAN region are still considered potential sources of demand growth, including in 2027. China and India also remain the primary markets for Indonesian coal exports.
Tri noted that coal price trends remain relatively stable with an upward tendency alongside demand from major markets. Regarding price formation, the movement of the Coal Price Benchmark (HBA) from January to August 2026 averaged around 111.8 US dollars per tonne. HBA I (5300 GAR) was valued at 79.3 US dollars, HBA II (4100 GAR) at 54.2 US dollars, and HBA III (3400 GAR) at 38.3 US dollars per tonne.
The government, he continued, has also established production policies through the 2026 Work Plan and Budget (RKAB), considering supply sustainability and market conditions.
The Ministry of Energy and Mineral Resources has set the national coal production target in the 2026 RKAB at approximately 600 million tonnes, which is lower than the 2025 production realisation of 817.48 million tonnes. Amidst this production adjustment, Tri added that logistics is also a concern, as weather conditions can affect coal distribution.
Based on predictions from the Meteorology, Climatology, and Geophysics Agency (BMKG), the 2026 dry season is expected to be longer than normal. Reduced rainfall in several regions could potentially lower the water levels of the Barito and Mahakam rivers, which serve as the primary transport routes for coal to export ports.
The coal price benchmark for the period of 1 April 2026 fell to 99.87 US dollars per tonne (IDR 1.69 million). Global market pressure continues, although the Ministry of Energy and Mineral Resources is considering production relaxation options.
Minister of Energy and Mineral Resources Bahlil Lahadalia has reduced the 2026 coal RKAB to 600 million tonnes. Through the Ministry of Energy and Mineral Resources, the government will cut coal production in 2026 by 24 per cent compared to the coal production realisation in 2025.