Will Indonesia Cut Coal Production as Prices Surge? This is What the Energy Ministry Says

Jakarta — The Ministry of Energy and Mineral Resources (ESDM) will adjust coal production in the 2026 Work and Budget Plan (RKAB), amid rising global commodity prices triggered by Middle East conflict sentiment.

The Director General of Mineral and Coal (Minerba) at the ESDM Ministry, Tri Winarno, stated the government is still monitoring global developments before making decisions regarding production adjustments.

However, the recent increase in coal prices is a relatively new phenomenon. Therefore, the government does not wish to rush to conclusions.

“I said this earlier, this is a recent development. We should not immediately draw conclusions from it,” Tri said at the ESDM Ministry on Monday, 9 March 2026.

According to Tri, the ministry has prepared several policy options, including the possibility of revising the RKAB should market conditions warrant it.

“But whether it will be opened or not depends on what happens. So we have prepared the doors. Just which ones, how, etc., that depends,” he said.

He then cautioned that responding to the momentum of rising commodity prices must be done carefully. According to him, production policy must consider the balance between supply and demand.

“The momentum or not should be looked at carefully, not carelessly. And we must not increase production recklessly only to see prices fall again. It is about supply and demand,” said Tri.