RRI.CO.ID, Jakarta - The Indonesian Coal Mining Association (APBI-ICMA) has reported that coal production quotas approved by the Ministry of Energy and Mineral Resources (ESDM) for 2026 are between 40 and 70 percent lower than the Work Plans and Budgets (RKAB) proposed by coal producers.

“Based on reports from our members, the approved production figures are far below the three-year RKAB approvals,” APBI-ICMA Executive Director Gita Mahyarani said in a statement received in Jakarta on Monday, February 2, 2026, as quoted by Antara.

She said the production cuts vary significantly, ranging from 40 to 70 percent. According to Gita, the sharply reduced production scale has made it difficult for coal mining companies to cover fixed operational costs, environmental obligations, workplace safety requirements, and other financial commitments.

“This condition increases the risk of delays or even the suspension of part or all operational activities, including impacts on employment in the form of layoffs,” she said.

APBI-ICMA has asked Energy and Mineral Resources Minister Bahlil Lahadalia to review the 2026 coal production cuts by taking into account business viability, operational sustainability, employment impacts, and potential spillover effects on supporting sectors and regional economies.

“This is so that the objective of production management can go hand in hand with maintaining the sustainability of mining operations and social and economic stability,” Gita added.

Earlier in 2026, Minister Bahlil Lahadalia stated that coal production would be reduced to around 600 million tons in 2026, down nearly 200 million tons from the 790 million tons produced in 2025.

The production cuts are aimed at maintaining global commodity prices. Global coal trade currently stands at around 1.3 billion tons per year, of which Indonesia contributes approximately 514 million tons.

The large volume of coal traded globally has put downward pressure on prices, as reflected in the benchmark coal price. The Reference Coal Price (HBA) for the first period of February 2026 was recorded at USD 106.11 per ton, lower than the USD 124.24 per ton recorded in February 2025.

Given Indonesia’s substantial share in global coal trade, the Energy Ministry believes production cuts can help support commodity prices.

“So that prices are good, and we also have to pass on these mines to our children and grandchildren. We should not manage natural resources with the mindset that everything must be exhausted now,” Minister Bahlil said. ***