Bahlil Prepares Measured Relaxation for Coal-Nickel, Cutback Cancelled?
Jakarta, CNBC Indonesia - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia is preparing options for production relaxations for coal and nickel commodities. These options will be considered if commodity prices remain at stable levels.
Bahlil emphasised that the relaxation in question will not be done freely, but in a measured and limited manner.
“Even if the prices remain stable, that’s good; we will consider how to implement a measured relaxation against the production planning. So everything is still within the bounds of coordination with the market, as well as supply and demand needs,” Bahlil stated after a limited meeting with the President in Hambalang, Bogor, on Wednesday (25/3/2026).
Bahlil affirmed that the government wants coal and nickel prices to remain at good levels. In this condition, the government will consider implementing measured and limited production relaxations, while maintaining the balance of supply and demand, as well as price stability.
He also revealed that Prabowo instructed him to prioritise national interests in managing natural resources, which are state assets.
In addition, the President also asked the government to seek sources of income in the mineral sector that have not yet provided a fair portion for the state, including opening opportunities to increase the Benchmark Mineral Price (HPM) for nickel.
“And because of that, even the President instructed to seek sources of income in the mineral sector that have so far been unfair to the state. Most likely, the HPM for nickel will be increased,” he said.
Previously, Finance Minister Purbaya Yudhi Sadewa stated that the government will determine the amount of coal export duties, along with the coal production target in the 2026 Work Plan and Budget (RKAB).
Purbaya mentioned that President Prabowo Subianto has already directed towards a certain figure.
“What is clear is that we will decide in tomorrow’s meeting. But clearly, the President has aimed at a certain number, so there’s no problem,” he stated at the Ministry of Finance building in Jakarta on Wednesday (25/3/2026).
According to him, the coal production target in the 2026 RKAB will also be changed, and the government will boost coal production this year.
“The RKAB plan may be changed. But it depends on what the Ministry of ESDM decides later. But clearly, it will be changed,” he said.
Regarding coal export duties, Purbaya revealed that there is already approval from Prabowo. His side will first finalise the plan before announcing it to the public.
“The figure has been decided by the President, but the meeting can be discussed first, then we can issue how it will be. But clearly, export duties will be imposed in accordance with the President’s directives. It’s not me who decides, you know,” he said.
When asked about the possibility of objections from coal businessmen, he responded, “They definitely won’t agree. But coal prices are very high now, over US$135.”
“So there is a certain figure that has been approved by the President, but clearly we must discuss whether the industry can accept it, not just what they want, how much the profitability is disrupted, that’s what is calculated, not what the coal company leaders want. If it’s them, they definitely don’t want it,” he added.
As is known, the Ministry of ESDM previously targeted coal production in the 2026 Work Plan and Budget (RKAB) to be cut to around 600 million tonnes, lower than the 2025 production realisation of 790 million tonnes.