Bahlil opens opportunities for measured relaxation of coal and nickel production quotas

Jakarta (ANTARA) - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has opened the possibility of implementing a measured relaxation to the production quotas for coal and nickel, in light of the rising commodity prices due to the war between the United States (US)-Israel and Iran.

“If the prices remain stable, that’s good; we will make a relaxation to the production planning, but it will be measured,” Bahlil stated during a briefing, as quoted from the Presidential Secretariat’s YouTube channel, monitored from Jakarta on Thursday.

The Ministry of ESDM has set the 2026 coal production quota at around 600 million tonnes, a reduction of approximately 190 million tonnes compared to the 2025 realisation of 790 million tonnes.

For nickel ore, the production limit has been lowered to 250-260 million tonnes from the 2025 Work Plan and Budget (RKAB) of 379 million tonnes.

This trimming is based on the imbalance between supply and demand for coal and nickel in the international market, particularly throughout 2025.

That imbalance caused coal prices to touch $97.65 per tonne in the second period of July 2025.

However, the outbreak of the war between the US-Israel and Iran has caused coal prices to rocket from below $120 per tonne to exceeding $130 per tonne within approximately one week at the beginning of March 2026.

The current rise in coal prices is triggered by disruptions to crude oil and liquefied natural gas (LNG) distribution in the international market.

“We pray that coal prices are good, nickel prices are good, and then we will carry out a measured relaxation. What is meant by measured relaxation is limited and still maintains the stability of supply and demand, and prices,” Bahlil said.

It was previously reported that Indonesian President Prabowo Subianto has instructed the optimisation of state revenues from coal commodities to capture sudden profits (windfall profit) amid the rise in global energy prices, as a strategy to strengthen the state budget posture pressured by geopolitical tensions in the Middle East.

As a follow-up, the government plans to promptly revise the 2026 Coal Work Plan and Budget (RKAB) to adjust production targets and revenues.