The Indonesian government will ask coal miners holding special contracts to supply a larger portion of their output domestically as they are expected to receive their full output quota requests, local media reported on Friday.
The government wants 75-million metric tons of coal to be supplied to state utility Perusahaan Listrik Negara (PLN) from holders of the first generation ‘contract of work’ deals and from state-controlled coal miners in the early months of 2026, Kontan news site reported, citing an energy ministry official.
A contract of work is a long-term agreement between miners and the government with specific rules, including on taxes. Energy Ministry official Tri Winarno was quoted saying these miners would be granted the output quotas they had requested because of the importance of their royalty payments.
Most coal miners in Indonesia have switched to newer special mining permits that generally follow the prevailing law. Indonesia requires coal miners to sell at least 25% of their output to the local market under a Domestic Market Obligation Scheme.
Indonesia has announced plans to cut mining output quotas this year for many of its minerals to help support prices. Last year, 32% of the national production of 790 million tons of coal was sold to the domestic market.
