Prabowo's Directive: All Coal Production Prioritised for Domestic Use
President Prabowo Subianto has emphasised that all natural resource production, including coal, must be prioritised for domestic requirements before commodities are exported.
According to Prabowo, this policy applies not only to coal but also to other strategic commodities such as palm oil. The government will therefore ensure national requirements are satisfied first before export permissions are granted.
“I want to make this clear here: all coal production is prioritised for our national needs, and this also applies to all commodities including palm oil, so we meet our nation’s needs first before we permit exports,” Prabowo said during a Full Cabinet Session at the State Palace on Tuesday (17 March 2026).
Additionally, Prabowo emphasised that all natural wealth in Indonesia fundamentally belongs to the Indonesian nation, not to individuals or companies.
“All of this belongs to the Indonesian nation, not to business owners. Business is permitted, but ownership belongs to the Indonesian nation. All natural wealth is owned by my nation, I want to emphasise that,” Prabowo stated.
Previously, Energy and Mineral Resources Minister Bahlil Lahadalia issued a warning to coal industry operators, particularly to prioritise fulfilling domestic coal demand through the Domestic Market Obligation (DMO) scheme.
Bahlil stated that he has mandated all coal companies that have submitted a Work Plan and Budget (RKAB) to fulfil their DMO obligations before conducting exports.
He also confirmed that if domestic coal demand is not adequately met, the government will not issue export permits for companies that fail to comply with DMO requirements.
“Coal companies that have submitted their RKAB are now required to fulfil the DMO. If domestic demand is not adequately met, then we will not issue export permits,” Bahlil said.
Meanwhile, Bahlil stated that the government has received reports indicating that coal supplies for Coal-Fired Power Plants (PLTU) are beginning to diminish. However, he disputed this assessment.