Coal Production Volume 2026 Confirmed To Drop

Illustration. (Photo: Doc. Antara)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia ensured that coal production for 2026 will decrease compared to production in 2024. This is intended to control coal prices in the international market, which continues to decline.

"Definitely (down). We are having an exercise (volume)," said Bahlil to the media crew, Friday, November 14.

He explained that the decline in coal prices in the international market was due to an imbalance between market needs and coal supply from Indonesia.

Meanwhile, based on the prognosis for 2024-2026 by the Ministry of Energy and Mineral Resources, the RKAB of coal is estimated at 900 million tons, resulting in the unequal demand and supply of coal and an impact on prices. For this reason, the government has again evaluated the volume of coal produced by coal mining companies

"The world's coal needs are only 1.3 billion tons. We can supply up to 600 million tons, almost 50 percent. Finally, now the price of coal has dropped considerably," he said.

Meanwhile, the Ministry of Energy and Mineral Resources noted that total coal production reached 836 million tons. Meanwhile, the total production reached 117 percent of the target set in 2024, which was 710 million tons.

The 233 million tons of which have been distributed domestically through the Domestic Market Obligation (DMO) scheme and 48 million tons for stock.

To control prices, Bahlil gains the option to increase the amount of DMO to more than 25 percent for priority industries such as electricity, fertilizer and cement.

However, he ensured that the price of the DMO would not change or remain at 70 US dollars per ton.

"If it is still lacking (for domestic needs), we will increase the DMO," said Bahlil.