Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, has confirmed that the government has not issued a new policy regarding the Coal Work Plan and Budget (RKAB) for coal in 2026. However, he stated that coal production will be relaxed in a measured manner.
“What we will do is have a measured relaxation,” said Bahlil when met at the office of the Coordinating Ministry for the Economy, on Friday, March 27, 2026. He said that this measured relaxation aims to prioritize domestic interests.
Bahlil explained that the relaxation would be carried out based on market demand and supply. If the price remains high, the production quota can be increased. However, if the price drops, the production quota will be adjusted to market demand.
In addition to coal, the government will also adjust the nickel production quota to be in balance with demand and supply. Bahlil believes that this adjustment can maintain nickel prices from falling. Furthermore, the Ministry of Energy and Mineral Resources will increase the reference price for nickel. “So, we will raise the standard reference price for nickel,” he said.
At the beginning of 2026, Bahlil had mentioned plans to reduce coal production. From the realization of coal production of 790 million tons in 2025, the government plans to reduce it to about 600 million tons in 2026. This step was taken to maintain commodity price stability and support sustainability principles.
However, recently, Coordinating Minister for the Economy Airlangga Hartarto stated that President Prabowo Subianto is pushing for an increase in coal production volume amid the surge in commodity prices. He said the government will revise the RKAB. “Regarding the additional prices, then coal will also be calculated about export taxes,” said Airlangga at the Presidential Palace Complex, Jakarta, on Thursday, March 19, 2026, as quoted from the Presidential Secretariat’s YouTube channel.
