The Minister of Energy and Mineral Resources (ESDM) recently confirmed that coal production in 2026 will be reduced to approximately 600 million tons. In comparison, national coal production in 2025 reached 790 million tons. At a press conference on "2025 ESDM Sector Performance Results" held in Central Jakarta on January 8, 2026, he stated that he had met with the Director General of Minerals and Coal to revise the Work Plan and Budget (RKAB) in order to reduce output.
He pointed out that the specific figure for the RKAB is still being calculated by the Director General, but it will be around 600 million tons, possibly slightly higher or lower. He explained that this production cut aims to maintain global supply-demand balance and stabilize prices. Currently, global coal trade volume is approximately 1.3 billion tons per year, while Indonesia supplies 514 million tons, accounting for about 43% of the global share. The high supply share has led to an imbalance in global supply and demand, thereby driving down coal prices.
He stated that in order to keep prices favorable and sustainably preserve mining resources for future generations, natural resources cannot be developed with a mindset of "must extract all now." Instead, it is necessary to balance national sustainable development, environmental protection, and social equity. He emphasized that Indonesia must take a long-term view of resource management, protect the environment, and ensure fair treatment of all parties' interests during development. This move is not only a response to market fluctuations but also a strategic adjustment for the sustainable development of the coal industry, aiming to prevent prolonged price declines while reducing environmental pressure and ensuring intergenerational resource inheritance.
The Minister of Energy and Mineral Resources (ESDM) recently confirmed that coal production in 2026 will be reduced to approximately 600 million tons. In comparison, national coal production in 2025 reached 790 million tons. At a press conference on "2025 ESDM Sector Performance Results" held in Central Jakarta on January 8, 2026, he stated that he had met with the Director General of Minerals and Coal to revise the Work Plan and Budget (RKAB) in order to reduce output.
He pointed out that the specific figure for the RKAB is still being calculated by the Director General, but it will be around 600 million tons, possibly slightly higher or lower. He explained that this production cut aims to maintain global supply-demand balance and stabilize prices. Currently, global coal trade volume is approximately 1.3 billion tons per year, while Indonesia supplies 514 million tons, accounting for about 43% of the global share. The high supply share has led to an imbalance in global supply and demand, thereby driving down coal prices.
He stated that in order to keep prices favorable and sustainably preserve mining resources for future generations, natural resources cannot be developed with a mindset of "must extract all now." Instead, it is necessary to balance national sustainable development, environmental protection, and social equity. He emphasized that Indonesia must take a long-term view of resource management, protect the environment, and ensure fair treatment of all parties' interests during development. This move is not only a response to market fluctuations but also a strategic adjustment for the sustainable development of the coal industry, aiming to prevent prolonged price declines while reducing environmental pressure and ensuring intergenerational resource inheritance.