Jakarta. Indonesia is considering increasing coal production quotas for 2027 as prices recover, although the government will continue to take supply and demand conditions into account when setting output targets and approving mining companies’ work plans and budgets.

Energy and Mineral Resources Minister Bahlil Lahadalia said coal prices had begun to recover, potentially opening the door to higher production.

“Coal is doing well now. Ideally, prices should be good and production should be high,” Bahlil said after opening the 2026 Mineral and Coal Convention and Exhibition (Minerba Convex) in Jakarta on Monday.

Indonesia’s coal production target for 2026 has been set at around 700 million metric tons following revisions to mining companies’ Work Plans and Budgets (RKAB). For 2027, the government is still considering whether to adjust or increase production quotas in response to improving global prices, with an official target yet to be finalized.

Bahlil said the government would consider market conditions when setting production quotas and approving mining companies’ annual work plans and budgets.

He cited Indonesia’s role in the global coal market, saying the country supplied 540 million metric tons of the 1.3 billion metric tons traded worldwide in 2025.

“Coal prices hit their lowest point in 2025. Company profits weren’t very high, government revenue wasn’t maximized, and we opened up vast areas of land only to sell our products at low prices,” Bahlil said.

In response, the government introduced measures including increasing the coal reference price (HBA( and reducing production to help balance supply and demand.

“Today, the price of high-calorie coal can reach $154 per metric ton. This is a strategic move because we’re managing supply and demand. Government revenue has surged, while production has declined,” he said.

Data from the Energy and Mineral Resources Ministry’s Directorate General of Minerals and Coal showed Indonesia produced 817.48 million metric tons of coal in 2025.

Production reached 423.71 million metric tons through July 2026, averaging about 60.5 million metric tons per month, below the 2025 monthly average of approximately 68.1 million metric tons.

Non-tax state revenue (PNBP) from coal stood at Rp 66 trillion as of Aug. 31, up from Rp 59 trillion in the same period a year earlier.

The latest ministry data showed coal production had reached 566.74 million metric tons. Coal exports totaled 343.08 million metric tons, with a reported value of $23.49 billion.

Bahlil emphasized that coal production quotas would continue to reflect market demand to prevent oversupply from pushing prices down again.

“The RKAB for the coal sector takes supply and demand into account. Ideally, high production should come with good prices,” he said.

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