Confirmed! Bahlil to Provide Measured Relaxation to Boost Coal Production
The Minister of Energy and Mineral Resources, Bahlil Lahadalia, has decided to provide measured relaxation for national coal production. This will be regulated through revisions to the 2026 Work Plan and Budget (RKAB).
According to the Minister, this step is being taken to respond to the increasing global coal selling prices resulting from escalating global geopolitical tensions. Bahlil noted that relaxing domestic coal production could provide benefits for the state, entrepreneurs, and the public.
“Regarding the RKAB, including coal, we are closely monitoring the geopolitical trends and tensions in the Middle East and global fluctuations. Ideally, the government, entrepreneurs, and the people have an interest in good prices and high production so that entrepreneurs profit, the state profits, and the people experience positive impacts. On that basis, we will provide measured relaxation; meaning, if prices are good, we will increase production. If prices begin to rise too sharply, we will implement policies to ensure supply and demand are maintained,” he explained following a meeting with the Deputy Speaker of the House of Representatives, Sufmi Dasco Ahmad, and the COO of Danantara, Dony Oskaria, at the DPR Building on Monday (08/06/2026).
He added that with the current upward trend in coal prices, increased production would benefit the country. “Regarding global prices, we will observe; if they are favourable, we will implement measured relaxation. The goal is to secure good prices and ensure foreign exchange inflows,” Bahlert stated.
The government continues to monitor global geopolitical developments and their impact on world coal prices. “We will see how things develop,” he concluded.
As previously noted, the government had set the 2026 RKAB production target at approximately 600 million tonnes. This represents a 24% decrease compared to the 2025 coal production realisation, which reached 790 million tonnes.
Global coal prices have surged throughout this week, approaching the US$150 per tonne level. According to Refinitiv data as of Friday (05/06/2026), the global coal price for two-month delivery contracts was recorded at US$147.5 per tonne, an increase of 0.31% from the previous day. Prices have risen significantly since the start of the year; on 1 January 2026, coal prices were at US$104.85 per tonne, before soaring following the outbreak of the Israel-Iran war on 28 February 2026. By 3 March 2026, prices jumped to US$138 per tonne from US$116.9 per tonne on 27 February 2026, prior to the conflict.