Bahlil: Coal Production to Be Relaxed in a Measured Manner

Energy and Mineral Resources Minister Bahlil Lahadalia has confirmed that the government has not yet issued any new policies regarding the 2026 Coal Work Plan and Budget (RKAB). However, he stated that coal production will be relaxed in a measured manner.

“What we have is that we will carry out a measured relaxation,” said Bahlil when met at the Office of the Coordinating Ministry for Economic Affairs on Friday, 27 March 2026. He explained that this measured relaxation aims to prioritise domestic interests.

Bahlil elaborated that the relaxation will be implemented by considering market demand and supply. If prices remain at high levels, production quotas could be increased. However, if prices fall, production quotas will be adjusted to match market demand.

In addition to coal, the government will also adjust nickel production quotas to balance demand and supply. Bahlil assessed that this adjustment could prevent nickel prices from falling. Furthermore, the Ministry of Energy and Mineral Resources will increase the reference price for nickel. “So, we will raise the standard reference price for nickel,” he said.

At the beginning of 2026, Bahlil had previously outlined plans to cut coal production. From a realisation of 790 million tonnes of coal production in 2025, the government intended to reduce it to around 600 million tonnes in 2026. This step was taken to maintain commodity price stability and support sustainability principles.

However, recently, Coordinating Minister for the Economy Airlangga Hartarto stated that President Prabowo Subianto is pushing for an increase in coal production volume amid the surge in commodity prices. He said the government will revise the RKAB. “Regarding the additional price, coal will also be calculated in relation to export taxes,” said Airlangga at the Presidential Palace Complex in Jakarta on Thursday, 19 March 2026, as quoted from the Presidential Secretariat’s YouTube.