Indonesian Political, Business & Finance News

Approved! PTBA Secures Approval for 49.5 Million Tonne Coal Production in 2026

| Source: CNBC Translated from Indonesian | Energy
Approved! PTBA Secures Approval for 49.5 Million Tonne Coal Production in 2026
Image: CNBC

PT Bukit Asam Tbk (PTBA) has received the green light from the Ministry of Energy and Mineral Resources (ESDM) for its 2026 Work Plan and Budget (RKAB). The company states that its proposed production target has been fully approved by the government at 49.5 million tonnes.

PTBA’s President Director, Arsal Ismail, revealed that the RKAB approval was secured at the beginning of March. He emphasised that the company’s operations will proceed in line with the strategic plan formulated for this year.

“Ladies and gentlemen, colleagues, entering 2026, we are also grateful that as of 6 March, the company’s RKAB has been approved without any reduction in the volume we proposed,” Arsal stated during the company’s performance presentation in Jakarta, quoted on Tuesday (7/4/2026).

Based on the approved RKAB, PTBA has set a target for coal production and sales of nearly 50 million tonnes. This volume is expected to be achieved optimally, in line with the application of good mining practice principles.

“Based on that RKAB, the company targets a production and sales volume of around nearly 50 million or 49.5 million, but we hope to reach 50 with a strategic focus on improving efficiency and optimising the business portfolio,” he added.

In comparison, throughout 2025, PTBA successfully produced 47.2 million tonnes of coal, an increase of about 9%. Meanwhile, sales volume was recorded at 45.4 million tonnes, with the majority portion of 54% allocated to meet domestic needs.

“Therefore, looking ahead to 2026, we remain optimistic and, of course, uphold the principle of prudence,” he stressed.

Indonesia’s Coal Target

For the coal sector, the Ministry of Energy and Mineral Resources (ESDM) plans to cut production in 2026 to approximately 600 million tonnes. This figure represents a reduction of about 190 million tonnes compared to the 2025 realisation of 790 million tonnes.

Energy Minister Bahlil Lahadalia stated that this production target cut is aimed at encouraging coal prices to rise again and preserving coal reserves for the future.

According to him, Indonesia supplies around 514 million tonnes of coal, or 43% of the total global trade volume of 1.3 billion tonnes per year. This situation is the root cause of the falling coal prices.

“As a result, supply and demand are not balanced, meaning coal prices drop. Through this happy opportunity, the Ministry of ESDM has met with the Director General of Mineral and Coal, and we will revise the RKAB quotas. So, we will reduce our production to ensure good prices and save our mines for our grandchildren,” Bahlil said, quoted on Monday (19/1/2026).

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