INDONESIA TO CUT COAL OUTPUT TO LIFT PRICES: MINISTER

JAKARTA, Feb 12 (Bernama-ANTARA) -- Indonesia’s Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia emphasised that coal production will continue to be cut to raise prices on the international market, as the country supplies coal abroad at around 43–45 per cent, Antara News Agency reported.

"We'll just balance consumption, and that's what we produce," Lahadalia said at the 2026 Energy Self-Sufficiency Strategy: Downstreaming, Transition and Investment forum held in Jakarta on Thursday.

He explained that total global coal consumption stands at 8.9 billion tonnes, while the volume of coal traded internationally is only around 1.3 billion tonnes.

"Indonesia supplies 560 million tonnes of coal abroad. But we don't control the price; this is just a scam," Lahadalia said.

Indonesian coal prices are showing a downward trend, as reflected in the coal reference price (HBA).

The HBA for the first period of February 2026 was recorded at US$106.11 per tonne, lower than the February 2025 HBA of US$124.24 per tonne.

Regarding calls by a mining association for the government to re-evaluate policies to increase coal and nickel production quotas in 2026, Lahadalia emphasised the importance of conserving non-renewable resources for future generations.

He said many entrepreneurs had become too accustomed to maintaining consistently high production levels, reminding them that the country does not belong only to the present generation but also to their children and grandchildren.

If coal and nickel are not selling at favourable prices, Lahadalia said, mass production should not be pursued. According to him, unextracted mining resources can be preserved for the next generation.

As previously reported, the Indonesian Mining Association (API-IMA) requested that the government review the policy of setting coal and nickel production quotas for 2026 and increase output limits for both commodities.

The 2026 coal production quota was set at around 600 million tonnes, a decrease of about 190 million tonnes compared with the 2025 realisation of 790 million tonnes.

For nickel ore, production limits were reduced to 250–260 million tonnes, down from the 2025 Work Plan and Budget (RKAB) level of 379 million tonnes.

-- BERNAMA-ANTARA