Minister Bahlil Issues New Regulation on Coal Blending, Here Are the Details

The Ministry of Energy and Mineral Resources (ESDM) has officially released Ministerial Regulation No. 6 of 2026, amending the previous Regulation No. 17 of 2025. The new regulation refines the procedures for preparing work plans and reporting in mining business activities. In addition to reporting, the regulation also establishes guidelines for the coal blending process, providing clearer standards for business actors in the mining sector. This step was taken to ensure the availability of coal supply for domestic electricity and industrial needs. Beyond securing supply, the government is also focused on maintaining commodity quality and optimising state revenue. The basis for this change is outlined in three key points. First, Article 19 stipulates that holders of an Operation Production Mining Business Permit (IUP), a Special Mining Business Permit (IUPK) for the operation production stage, or an IUPK as a Continuation of Contract/Agreement must submit a quarterly periodic report. This report must include the implementation of coal blending activities for those who have obtained approval for coal blending, as well as tax compliance, non-tax state revenue, and the realisation of resource development and utilisation activities. Second, Article 33 clarifies administrative corrections. If procedural errors or assessment mistakes are found during the approval or rejection of a Work Plan and Budget (RKAB), the Minister or Governor, according to their authority, may make corrections without additional complicated procedures. Third, and most significantly, specific rules on coal blending are established through the addition of Articles 34A and 34B. Coal blending is now only permitted to meet certain quality specifications and requires prior written approval from the Minister. This applies to IUP, IUPK, IUPK continuation, and Coal Mining Work Agreement (PKP2B) holders whose RKAB has been approved. To apply for blending approval, business actors must submit a request through the official information system, attaching documents such as the approved RKAB for the main coal and blending material, copies of purchase and sale agreements, quality test results from a registered surveyor, and simulation data of quality before and after blending. The quality data must include calorific value, sulphur content, moisture content, and ash content. Approval is valid for the duration of the RKAB, and any rejection must be accompanied by clear reasons. Furthermore, Article 34B states that more detailed technical provisions regarding application guidelines, evaluation, and permit issuance will be regulated separately through a Ministerial Decree. This Ministerial Regulation was signed by Minister Bahlil Lahadalia on 8 June 2026 and takes effect from the date of its promulgation.