Minister of Energy and Mineral Resources, Bahlil Lahadalia, revealed that Indonesia’s coal production reached 357.6 million tons in the first half of 2025. This figure represents only 48.34 percent of the annual production target of 739.7 million tons.
Out of the total production, Bahlil stated that around 238 million tons, or 66.5 percent, were allocated for export. Meanwhile, 104.6 million tons, or 29 percent, were used for domestic needs through the Domestic Market Obligation (DMO) program, which includes supply for power plants, smelters, and other sectors. “The remaining 15 million tons are still recorded as stock,” said Bahlil during a press conference at the Ministry of Energy office on Monday, August 11, 2025.
Bahlil mentioned that the coal industry is currently facing challenges due to the low selling price. In the past six months, he said that the global coal price has dropped by around 30 percent.
According to him, one of the drivers of the coal price decline is the imbalance between supply and demand. Currently, Bahlil continued, the total coal circulating in the global market has reached 1.3 billion tons. Based on last year’s data, Indonesian coal contributed between 600 and 650 million tons to the global market.
To control the supply and demand of coal, Bahlil stated that the government is preparing to change the coal exploitation Work Plan and Budget (RKAB) policy from every three years to once a year. He believes this strategy is intended to protect the coal industry amid the decline in prices.
“It’s also ironic when Indonesia, as the main coal exporter for the world’s electricity, cannot do much when the price drops due to decreased demand, while the stock is abundant. Therefore, the revision of the RKAB will be carried out without hesitation for market stability,” he said.
Bahlil also stated that the government will implement fair tax policies and ensure that both entrepreneurs and the country benefit equally. He said that this surplus production must also consider long-term sustainability. “This management is not only for the next five years, but also for our future generations,” he added.
Meanwhile, the Indonesian Energy, Mineral, and Coal Suppliers Association (Aspebindo) revealed that the decline in coal export volumes during the first half of this year was due to reduced demand from the main importers, China and India.
Fathul stated that according to the International Energy Agency (IEA) report, China has massively increased coal production as part of its national energy resilience strategy.
Increased production has also been carried out by India. Fathul said that the Indian Coal Ministry announced domestic production reaching a record high throughout 2024-2025. According to Fathul, this surplus reduces India’s dependence on imports.
