The Minister of Energy and Mineral Resources, Bahlil Lahadalia, has stressed the importance of reducing coal production to increase prices in the global market. This is particularly crucial as Indonesia currently supplies approximately 43-45 percent of its coal production overseas.
"We'll just balance consumption, and that's what we produce," Lahadalia said at the 2026 Energy Self-Sufficiency Strategy: Downstreaming, Transition, and Investment held in Jakarta
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He provided insight into the fact that the worldwide consumption of coal amounts to 8.9 billion tons, with only approximately 1.3 billion tons of coal being traded internationally. Indonesian coal prices are currently experiencing a decline, evident from the coal reference price (HBA).
"Indonesia supplies 560 million tons of coal abroad. But we don't control the price; this is just a scam," Lahadalia says.
The HBA for the initial period of February 2026 is documented at US$106.11 per ton, which is a decrease compared to the HBA of US$124.24 per ton in February 2025. The mining association has urged the government to review its policy on raising coal and nickel production quotas in 2026.
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Lahadalia stressed the significance of preserving the production of non-renewable resources for generations to come.
Lahadalia pointed out that numerous entrepreneurs had become accustomed to sustaining perpetually high levels of production, urging them to consider that the nation's ownership extends beyond the current generation to include future descendants.
Lahadalia emphasizes that if coal and nickel are not currently fetching a favorable market price, it would not be advisable to commence large-scale production. He suggests that it may be prudent to preserve these untapped mineral reserves for future generations. The Indonesian Mining Association (API-IMA) has formally requested the government to reassess its policy on setting production quotas for coal and nickel in 2026, urging for an increase in production limits for both minerals.
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The coal production target for 2026 has been established at approximately 600 million tons, reflecting a reduction of about 190 million tons from the 790 million tons produced in 2025. Production limitations for nickel ore were decreased to a range of 250-260 million tons from the 379 million tons outlined in the 2025 Work Plan and Budget (RKAB).
Previously, president Prabowo Subianto convened the Red and White Cabinet at the Merdeka Palace in Jakarta, emphasizing the importance of effective management of natural resources, particularly in the mineral and coal sectors, to enhance state revenue. During the discussion, Energy and Mineral Resources Minister Bahlil Lahadalia indicated that the president emphasized the importance of aligning the management of national natural resources with the state's objectives, specifically focusing on maximizing government revenue. Lahadalia elucidated that the president emphasized the importance of natural resources management considering the sustainability of the business sector.
The president directed the Ministry of Energy and Mineral Resources (ESDM) to develop policies that align with the broader national objectives. The President underscored the significance of effectively managing natural resources for the well-being of the population, in alignment with the principles set forth in Article 33 of the 1945 Constitution.