We Will Balance Coal Production with Global Consumption: Govt

RRI.CO.ID, Jakarta – The Indonesian government decided to curb national coal production to stabilize prices on the global market, as the country supplies around 43–45 percent of globally traded coal.

Energy and Mineral Resources Minister Bahlil Lahadalia said the policy aims to balance supply with demand in order to prevent further price declines.

“If we produce too much while demand is low, prices will fall. So we will balance production with consumption,” Minister Bahlil said at the 2026 Energy Self-Sufficiency Strategy: Downstreaming, Transition and Investment forum in Jakarta on Thursday, February 12, 2026, as quoted by Antara.

Minister Bahlil said Indonesia’s coal prices are largely influenced by consumption in importing countries because Indonesia accounts for 43–45 percent of coal traded on the international market.

He noted that global coal consumption reaches 8.9 billion tons, while only around 1.3 billion tons enter international trade. “Indonesia supplies 560 million tons of coal abroad. But we do not control the price. That’s what you would call abuleke [deceitful],” Minister Bahlil said.

Indonesia’s benchmark coal price, known as the Harga Batu Bara Acuan (HBA), has shown a downward trend. The HBA for the first period of February 2026 stood at USD 106.11 per ton, down from USD 124.24 per ton in February 2025.

Earlier, the Indonesian Mining Association (API–IMA) urged the government to review its 2026 production quota policy for coal and nickel, calling for higher output limits for both commodities.

The government has set the 2026 coal production quota at around 600 million tons, down about 190 million tons from the 2025 realization of 790 million tons. Nickel ore production has been capped at 250–260 million tons, compared with 379 million tons under the 2025 Work Plan and Budget (RKAB).

Responding to the industry’s request, Bahlil stressed the importance of preserving non-renewable resources for future generations.

“Our entrepreneurs, my colleagues, have become too accustomed to producing in large volumes. I told them, ‘Boss, this country does not belong only to us. It also belongs to our children and grandchildren,’” he said.

Minister Bahlil added that if coal and nickel cannot be sold at favorable prices, production should not be expanded aggressively. Unextracted mining commodities, he said, can be preserved for the next generation.

“One day, we will be gone, and they will continue building this country. We must not allow them to inherit depleted resources as a result of our actions. On top of that, sold cheaply,” he said. ***