November 14, 2025 | 06:10 am
TEMPO.CO, Jakarta - Indonesia’s Ministry of Energy and Mineral Resources (ESDM) plans to reduce coal production in 2026 as part of efforts to stabilize and increase coal prices in the international market.
“The production will be restrained. There will be a decrease in production because coal prices have plummeted,” said Tri Winarno, Director General of Minerals and Coal at the ESDM Ministry, in a statement to Antara on Thursday, November 13, 2025.
Tri indicated that coal output next year could fall below 700 million tons, although the ministry has yet to specify the exact reduction target.
In 2024, Indonesia produced 836 million tons of coal, exceeding its target of 710 million tons by 17 percent. Of that total, 233 million tons were allocated to the Domestic Market Obligation (DMO) and 48 million tons to domestic coal stockpiles.
Indonesia exported 555 million tons of coal in 2024, accounting for roughly 33–35 percent of global coal consumption. Tri estimates that coal production for 2025 will reach around 750 million tons, nearly 100 million tons lower than 2024.
The planned production cut in 2026 is aimed at boosting international coal prices, Tri explained. “The ideal situation is high production and good prices. That is the goal,” he said.
Coal reference prices (HBA) have already shown a decline, falling to US$103.75 per ton in early November from US$109.74 per ton in late October 2025.
Meanwhile, coal exports from January to July 2025 dropped 21.74 percent to US$13.82 billion, according to the Central Statistics Agency (BPS), compared with US$17.66 billion in the same period in 2024.
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