Coal Production Relaxation, Bahlil Prioritises Domestic Needs

REPUBLIKA.CO.ID, JAKARTA — The government has assured that domestic coal needs will continue to take precedence amid the production relaxation policy to be implemented in 2026.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia emphasised that there will be no changes to the coal Work Plan and Budget (RKAB) policy. However, the government will apply a measured production relaxation.

“Regarding the RKAB, there will be no changes. What we will do is implement a measured relaxation,” Bahlil stated at the Coordinating Ministry for the Economy office on Friday (27/3/2026).

He explained that the policy will focus on ensuring that domestic needs remain the top priority, particularly for the electricity and domestic industry sectors.

“We will prioritise national interests. We want all of PLN’s needs to be met, fertiliser, and then all domestic industries must be fully supplied,” he said.

On the other hand, the government is also considering global market dynamics in determining production levels. Global uncertainties, including the impact of geopolitical conflicts, have caused fluctuations in coal demand and prices.

Therefore, production will be adjusted to market conditions to maintain a balance between supply and demand.

“If prices are good, we will also produce more, but if prices drop, we will adjust to market demand,” Bahlil clarified.

With this scheme, the government seeks to maintain coal price stability while protecting national industry interests from the impacts of global market turbulence.