Indonesia’s Coal Quota Set to Exceed 600 Million MT

RRI.CO.ID, Jakarta - The Indonesian Ministry of Energy and Mineral Resources is exploring opportunities to increase national coal production amid rising global energy commodity prices. The policy aims to safeguard domestic supply while capitalizing on favorable market conditions.

Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, confirmed that the 2026 coal production quota will exceed 600 million metric tons (MT). “This is in line with domestic demand,” Yuliot said in a statement at the ministry’s office in Jakarta on Wednesday, June 17, as quoted by Antara.

According to Yuliot, the government has thoroughly calculated national coal demand. Of the 154 million MT required by the State-Owned Electricity Company (PLN)’s coal-fired power plants (PLTU), 134 million MT are already covered by supply contracts.

PLN still needs 20 million MT to meet its power plant requirements. “We are working to address that shortfall,” Yuliot added.

Energy and Mineral Resources Minister Bahlil Lahadalia said the government will adjust production quotas in a measured manner in response to developments in global coal prices.

The Reference Coal Price (HBA) for the second period of June 2026 stood at USD 123.91 per MT, up from USD 116.32 per MT in the second period of May. The increase was triggered by uncertainty in the global energy market after a conflict involving the United States, Israel, and Iran disrupted the distribution of crude oil and liquefied natural gas (LNG).

Minister Bahlil emphasized that production should be increased when prices are favorable. However, the government has not yet set a new quota since the relaxation policy was introduced.

Earlier, the 2026 coal production quota was set at around 600 million MT, 190 million MT lower than the 2025 production figure of 790 million MT. The reduction was made due to a global supply-demand imbalance that had pressured coal prices throughout 2025, when the HBA dropped to USD 97.65 per MT in July.

The Ministry of Energy and Mineral Resources has now confirmed that the 2026 quota will exceed 600 million MT, in line with domestic demand. ***