Jakarta (ANTARA) - Indonesia will reduce coal production volume in 2026 compared to 2025 to help stabilize international coal prices, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia confirmed on Friday."Definitely. We're currently reviewing the volume," Bahlil said at the ESDM Ministry office in Jakarta.
He explained that the drop in coal prices is due to an imbalance between global demand and Indonesia’s coal supply.
In 2024, Indonesia produced 836 million tons of coal—117 percent of the government’s target of 710 million tons.
Of this, 233 million tons were allocated to the domestic market (DMO), and 48 million tons were reserved for domestic stockpiles.
Indonesia exported 555 million tons of coal in 2024, accounting for roughly 33–35 percent of global coal consumption, which Bahlil estimates at 1.3 billion tons.
“As a result, coal prices have dropped significantly,” he said.
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The benchmark coal price (HBA) for early November 2025 fell to US$103.75 per ton, down from US$109.74 in late October and US$114.43 in November 2024.
To boost prices, Indonesia will cut production while ensuring domestic needs are met. This will be done by reducing export quotas.
If necessary, Bahlil said the government may raise the Domestic Market Obligation (DMO) above 25 percent for priority industries—such as electricity, energy, fertilizer, and strategic sectors—while maintaining the fixed DMO price of US$70 per metric ton, unchanged since 2018.
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“If domestic supply is still insufficient, we'll increase the DMO,” he added.
Under Government Regulation No. 39/2025, priority industries include electricity (PLN’s demand is 140–160 million tons), fertilizer, and cement—sectors deemed vital to public welfare.
