Indonesia Plans Significant Coal Production Cut for 2026

Government to Revise Mining Work Plan and Budget

The Indonesian government is set to revise the Mining Work Plan and Budget (RKAB) for 2026, with plans to reduce coal production to 600 million tons. This represents a significant decrease from the 790 million tons produced in 2025. The decision was announced by Minister of Energy and Mineral Resources, Bahlil Lahadalia, during a press conference on January 8, 2026.

Rationale Behind Production Cut

While the exact rationale behind the production cut wasn't detailed, the move aligns with global trends of managing fossil fuel production more sustainably. The government is expected to finalize the revised RKAB soon, with the new production target likely to be around 600 million tons, give or take a few million.

Implications for Indonesia's Energy Sector

This reduction in coal production could have significant implications for Indonesia's energy sector, which has traditionally been heavily reliant on coal. The move may signal a shift towards more sustainable energy practices, potentially impacting both domestic energy production and Indonesia's position in the global coal market.