Government to Maintain Mineral and Coal Production to Ensure Global Price Stability

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has asserted that the government will not chase increased mineral and coal production if it causes commodity prices to fall on the global market. According to him, abundant production without a corresponding good price will only reduce state revenue from the mining sector.

Bahlil stated that the relaxation policy for Work Plans and Budgets (RKAB) is being implemented carefully, taking into account the balance between supply and demand. The government wants to ensure production continues, but without depressing Indonesian commodity prices due to an oversupply in the market.

‘Ideally, we mine a lot but the price must also be good. If we produce a lot and the price is not good, isn’t the state at a loss?’ the Minister of ESDM asked rhetorically to the media in Jakarta, as quoted on Tuesday (4/8/2026).

According to Bahlil, the management of natural resources is not only intended to meet current needs but must also consider the interests of future generations. Therefore, the government must be cautious in setting production volumes so that mineral reserves are maintained and can provide optimal economic value in the long term.

He explained that an excessive increase in production when market demand is not growing will only trigger a price correction. As a result, commodities that could have been sold at higher prices over a longer period lose their economic value.