Tomorrow, the Fate of Coal Export Duties and 2026 Production RKAB Will Be Decided

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa stated that the government will determine the coal export duty rates, along with the coal production targets in the 2026 Work Plan and Budget (RKAB), at a meeting tomorrow, Thursday (26/3/2026). Purbaya noted that President Prabowo Subianto has already directed a specific figure. “Clearly, we will decide at the meeting tomorrow. But the President has aimed for a certain figure, so there are no issues,” he said at the Ministry of Finance building in Jakarta on Wednesday (25/3/2026). When asked about the specific amount, Purbaya replied, “The meeting is tomorrow. The President said a certain amount, but the technical details need to be refined, and once they are, we will announce it.” “The figure has been decided by the President, but the meeting will allow for discussion first, and then we can issue it accordingly. But clearly, the export duty will be imposed in line with the President’s directives. It’s not me who decides,” he added. When asked about potential objections from coal businessmen, he said, “They certainly won’t agree. But coal prices are very high now, over US$135.” “So there is a specific figure already approved by the President, but we clearly need to discuss whether the industry can accept it, not just what they want, how much it affects profitability—that’s what we calculate, not the desires of the coal company leaders. If it’s up to them, they definitely won’t want it,” he explained. The same applies to coal production targets. According to him, the 2026 RKAB coal production target will also be revised, and the government will ramp up coal production this year. “The RKAB plan may be revised. But it depends on what the Ministry of Energy and Mineral Resources decides. But clearly, it will be revised,” he said. Previously, Coordinating Minister for the Economy Airlangga Hartarto revealed that national coal production this year will be increased as an anticipatory step against the impact of the war in the Middle East, which has triggered a rise in global energy prices. He said the government is evaluating an increase in coal production volume in the 2026 Work Plan and Budget (RKAB). This step follows President Prabowo Subianto’s directives in the cabinet meeting last Thursday (19/3/2026). The increase in coal production is expected to help suppress the risk of spikes in fuel oil (BBM) prices and other energy commodities due to geopolitical turmoil. “Therefore, the President also requested that the coal production volume be increased. That means there will be adjustments to the RKAB,” Airlangga said at the State Palace. In addition to increasing production, the government is also studying a coal export tax scheme as one effort to optimise state revenues. With the potential for rising commodity prices, the government hopes to gain additional income from windfall profits in the coal sector. “The hope is that government revenue will also rise with the windfall profits, which will lead to increased government income.” Not only that, Prabowo is also pushing for the acceleration of converting diesel power plants (PLTD) to solar energy-based power plants. This policy aligns with the surge in global crude oil prices, which have breached US$100 per barrel. “The President has directed that this be realised immediately and calculated. Danantara was tasked with resolving the issues with those PLTDs,” he revealed.