Bahlil Opens Possibility of Easing Nickel and Coal Production Quotas

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has opened the possibility of a limited relaxation of coal and nickel production quotas. This policy is being considered following a surge in commodity prices due to the US-Israel conflict with Iran. “If the prices remain stable, that’s good; we will implement a relaxation of the production planning, but in a measured way,” Bahlil stated, as quoted from the Presidential Secretariat’s YouTube channel on Thursday (26/3/2026). Nickel ore production is also under pressure. The 2026 target is around 250-260 million tonnes, lower than the 2025 Work Plan and Budget (RKAB) of 379 million tonnes. The quota reduction was due to global supply exceeding demand throughout 2025, which pressured prices of both commodities. Coal prices even fell to 97.65 US dollars per tonne in the second half of July 2025, or about Rp1.66 million. Coal prices have since risen sharply. From below 120 US dollars per tonne, prices surged past 130 US dollars per tonne, or about Rp2.21 million, in just about a week at the beginning of March 2026. “We pray for good coal prices, good nickel prices, and then we will implement a measured relaxation. This measured relaxation is limited and still maintains the stability of supply and demand, and prices,” Bahlil said.