Several Indonesian coal producers have likely received new one-year work plan and budget (RKAB) approvals for 2026, and have reported production cuts at varying levels, market sources told Argus today.
A handful of major coal producers in key mining region Kalimantan likely received RKABs amounting to cuts of 40-50pc, said several market participants. Other key producers in Kalimantan likely got production cuts of around 20pc under their new RKABs. Another medium sized producer had to cut production by 10pc under its new RKAB, it told Argus.
Other small and medium-sized miners are likely to cut production by 30-40pc under approved RKABs, a coal trader with operations in Sumatra told Argus.
The Indonesian energy ministry (ESDM) has yet to issue RKABs for all miners and some major producers in the country told Argus that they are still awaiting approval.
The ESDM previously approved an RKAB for 2025 at 917.16mn t. Actual production in the country reached 790mn t in 2025, government data compiled by the Indonesian Coal Mining Association (ICMA) show.
The country is expected to cut overall production to around 600mn t in 2026, according to an update by Indonesia's energy minister Bahlil Lahadalia at a press conference on 8 January. This means a cut of around 24pc in overall national production.
The RKAB is a key document for miners that sets production quotas for Indonesian coal producers. Miners risk sanctions ranging from formal warnings and fines to the revocation of mining permits if they do not obtain approval.
