RRI.CO.ID, Jakarta - The Indonesian government is exploring opportunities to gradually increase coal production amid a surge in global energy commodity prices.

The policy is intended to maximize economic benefits while responding to international market dynamics amid rising geopolitical uncertainty from conflicts involving the United States, Israel, and Iran.

“This means that if coal prices are good, we will increase production,” said Minister of Energy and Mineral Resources Bahlil Lahadalia during a press conference at the Senayan Parliament Complex in Jakarta on Monday, June 8, 2026, as quoted by Antara.

He explained that the policy will be adjusted according to global price developments. The government believes the momentum of rising prices should be leveraged to strengthen state revenue while supporting the national mining industry.

“If prices are good, our production must also be high. So that business owners can profit, the State can profit, and the people can also experience positive impacts,” Minister Bahlil said.

The Ministry had previously set a 2026 coal production target of around 600 million tons, 190 million tons below the 2025 realization of 790 million tons. The reduction was based on an imbalance between supply and demand in the international market last year.

As prices improve, the government is considering adjusting production quotas. However, the extent of additional output will be evaluated based on market developments and national needs. “We’ll see how it goes,” Minister Bahlil said.

The Reference Coal Price (HBA) for the first period of June 2026 was recorded at USD 121.83 per ton, higher than USD 116.32 per ton in the second period of May.

The increase was also driven by disruptions in the global distribution of crude oil and liquefied natural gas (LNG), boosting demand for coal as an alternative energy source. ***