ESDM: Coal Production Approaching Quota

The Ministry of Energy and Mineral Resources (ESDM) states that coal production is approaching the 600 million tonne quota. According to Director General of Mineral and Coal Tri Winarno, the production quota may still change in line with commodity price developments.

“The figure is already moving close to 600 million tonnes, almost complete,” said Tri when met at the Ministry of ESDM office on Monday, 6 April 2026.

He stated that the coal production quota relaxation mechanism aims to maintain the balance of state revenues through royalties.

Nevertheless, Tri said that the quota relaxation mechanism cannot yet be decided at this time before the 2026 Work Plan and Budget (RKAB) production figures are set.

“Once the supply is over, it will certainly drop again,” he said.

Previously, Energy Minister Bahlil Lahadalia stated that coal and nickel production would be cut in 2026. This step is to maintain market prices, as coal commodity prices are currently declining.

According to Bahlil, excessive production causes commodity prices to fall. Then, businesses need to get fair prices alongside the state also receiving appropriate revenues.

“The amount of coal traded is only around 1.3 billion tonnes. Indonesia supplies around 500-600 million tonnes. Almost 50 percent,” said Bahlil during a press conference at his office on Friday, 19 December 2025.