
TEMPO.CO, Jakarta - Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot has confirmed that the government will grant a coal production quota exceeding 600 million tons as a relaxation policy amid soaring global coal prices.
"Yes, it will be above 600 million tons, adjusting to domestic needs," Yuliot said when met at the ESDM Ministry office in Jakarta on Wednesday, June 17, 2026, as quoted by Antara.
Yuliot conveyed that the ESDM Ministry has evaluated domestic coal requirements, including the supply needed for steam power plants (PLTU) operated by state electricity firm PLN.
Out of the 154 million tons of coal required by PLN, the ESDM Ministry recorded that 134 million tons have already been secured under contract. Therefore, PLN still requires an additional 20 million tons of coal to meet its power generation needs. "The shortage of 20 million tons is being addressed," Yuliot stated.
Energy and Mineral Resources Minister Bahlil Lahadalia previously stated that the government would implement a relaxation on the coal production quota following the commodity price surge triggered by the conflict involving the US, Israel, and Iran.
Bahlil mentioned that this measured relaxation of the coal production quota is the government's direct response to highly fluctuating global coal prices.
The Indonesian reference coal price (HBA) for the second period of June 2026 has been set at US$123.91 per ton. This figure marks a notable increase compared to the HBA in the second period of May 2026, which was pegged at US$116.32 per ton.
Ideally, Bahlil explained, when market prices are favorable, production should be abundant to maximize positive economic impacts. However, he has not yet finalized the exact figure for the total coal production quota following the implementation of this relaxation policy.
In early 2026, the ESDM Ministry initially capped the coal production quota for the year at around 600 million tons, representing a 190-million-ton reduction compared to the 2025 realized production of 790 million tons.
This initial reduction was based on the imbalance between supply and demand in the international market throughout 2025. The supply glut had caused coal prices to briefly plummet to US$97.65 per ton during the second period of July 2025.
However, the outbreak of the US-Israel war with Iran led to a sudden surge in coal prices, climbing from below US$120 per ton to well over US$130 per ton within approximately a week in early March 2026.
The current surge in coal prices continues to be fueled by logistical and distribution disruptions hitting crude oil and liquefied natural gas (LNG) supplies in the international market.
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