Indonesia Slashes 2026 Coal Production Target to 600 Million Tons

Significant Reduction in Coal Production

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has announced a substantial reduction in the country's coal production target for 2026. Minister Bahlil Lahadalia stated that the production will be cut to around 600 million tons ¹

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Source 3

https://industri.kontan.co.id/news/pengusaha-batubara-ungkap-dampak-pemangkasan-rkab-2026-terhadap-harga

, a significant decrease from the 790 million tons produced in 2025 ²

Source 2

https://finance.detik.com/energi/d-8297609/produksi-batu-bara-dipangkas-jadi-sekitar-600-juta-ton

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Rationale Behind Production Cut

The decision to reduce coal production is primarily driven by the need to maintain a balance between global supply and demand and to stabilize coal prices ²

. Indonesia is a major player in the global coal market, supplying approximately 43% of the global trade with 514 million tons annually ²

Source 2

https://finance.detik.com/energi/d-8297609/produksi-batu-bara-dipangkas-jadi-sekitar-600-juta-ton

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Market Reaction and Future Implications

The coal industry is expected to react to this production cut by potentially seeking alternative supplies ³

. Major consumers like China and India might increase their domestic production to compensate for the reduced supply from Indonesia ³

Source 3

https://industri.kontan.co.id/news/pengusaha-batubara-ungkap-dampak-pemangkasan-rkab-2026-terhadap-harga

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