The Ministry of Energy and Mineral Resources recently announced that
domestic coal production for 2026 will be reduced to over 600 million tons, lower than the
actual production of 790 million tons in 2025, but slightly above the market expectation of 600 million tons. The reduction mainly considers domestic industrial demand and the needs of the State Electricity Company (PLN).
First-generation
PKP2B license holders and state-owned
IUP license holders are not subject to the production cut, but must increase their
Domestic Market Obligation (DMO) ratio from 25% to 30%.
The Indonesian Coal Mining Association (APBI) stated that most companies face production cuts of 40%–70%, with some even reduced by
80%. The second-phase Work Plan and Budget (RKAB) assessments have been largely published, with room for reassessment before official enactment.
At the same time, the Ministry of Energy and Mineral Resources has officially
lowered the 2026 nickel ore production quota to 260–270 million tons, a
29%–31% decrease from 379 million tons in 2025, to boost the sluggish international nickel prices in 2025.
Weda Bay Nickel's 2026 quota has been sharply reduced from 42 million tons to 12 million tons, with its shareholder, France's
Eramet, confirming the cut and planning to apply for a revision.In the capital market:
- Coal companies: Adaro, Bumi Resources shares rose, Indika, Bukit Asam fell;
- Most nickel-related companies saw their shares strengthen.
