Bahlil Opens Option to Increase Coal and Nickel Production Quotas
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has opened the possibility of measured relaxations to the coal and nickel production quotas following the rise in energy commodity prices due to global geopolitical conflicts. The government considers price stability as the primary factor before implementing production relaxation policies.
Bahlil stated that the government will consider adjusting production planning if commodity prices remain stable at high levels. “If the prices remain stable and good, we will make a relaxation to the production planning, but it will be measured,” said Bahlil in a statement quoted from the Presidential Secretariat’s YouTube channel on Thursday (26/3/2026).
The Ministry of ESDM previously set the 2026 coal production quota at around 600 million tonnes, a decrease of about 190 million tonnes compared to the 2025 production realisation of 790 million tonnes. For nickel ore, the production limit was set at around 250 million to 260 million tonnes from the 2025 Work Plan and Budget (RKAB) of 379 million tonnes.
Production restrictions were imposed due to the imbalance of supply and demand for coal and nickel in the global market throughout 2025. That condition once pressured coal prices to around US$97.65 per tonne in the second period of July 2025.
However, the conflict between the United States, Israel, and Iran has triggered a surge in global energy prices. Coal prices, which were previously below US$120 per tonne, jumped beyond US$130 per tonne within about a week in early March 2026 due to disruptions in crude oil and liquefied natural gas distribution in the international market.
Bahlil said the government will maintain market balance even while opening the possibility of production relaxation. “We pray for good coal prices, good nickel prices, then we will carry out measured relaxation. That relaxation is limited and still maintains the stability of supply and demand as well as prices,” said Bahlil.
Previously, President Prabowo Subianto instructed the optimisation of state revenues from coal commodities to capture sudden profits or windfall profits amid the rise in global energy prices. This step is taken to strengthen the state budget posture facing pressure due to geopolitical tensions in the Middle East.
As a follow-up, the government plans to revise the 2026 coal RKAB to adjust production targets while increasing state revenues from the mining sector.