Government Pursues Coal Windfall Profits to Strengthen State Budget
Coordinating Minister for the Economy Airlangga Hartarto stated that Prabowo Subianto has instructed the optimisation of state revenues from coal commodities to capture windfall profits amid the global energy price increase. This step is taken as a strategy to strengthen the APBN’s position, which is under pressure due to geopolitical tensions in the Middle East.
“Regarding the additional prices, coal will also be calculated in relation to export taxes, the amount of which will be reviewed by the team. The hope is that government revenue will also increase with the windfall profit,” said Airlangga during a press conference at the Presidential Palace Complex in Jakarta, Thursday, 19 March 2026, as quoted from Antara.
He explained that the current increase in coal prices is triggered by disruptions in the distribution of crude oil and liquefied natural gas (LNG) in the international market. Furthermore, the government also plans to soon revise the 2026 Coal Work Plan and Budget (RKAB) to adjust production targets and revenues.
In addition to maximising commodity revenues, Airlangga said, the government is accelerating the conversion of Diesel Power Plants (PLTD) to Solar Power Plants (PLTS). This transition effort aims to reduce dependence on fuel oil (BBM), whose prices are currently volatile.
He stated that President Prabowo has directed that this be realised immediately and calculated for conversion into solar power plants. “Danantara has been tasked with resolving those issues,” said Airlangga.
Furthermore, Airlangga said, the government emphasised that it will not raise the budget deficit limit. The Head of State requested that the deficit be strictly maintained in accordance with the mandate of Law No. 17 of 2023 on State Finances. “In the meeting with the President, the President’s directive was reported, the first of which is certainly related to maintaining the APBN so that the deficit remains below 3 percent.”
In addition, the government is also reviewing operational spending by ministries and agencies that are deemed able to be made more efficient. One scheme being refined is flexible working for civil servants to reduce routine bureaucratic costs. “All of this we are preparing again. Once the concept is mature, we will immediately inform the public in more detail,” said Airlangga.