Indonesia's energy ministry (ESDM) said today that it is still working to determine coal producers' 2026 Work Plan and Budgets (RKABs) and that it has not yet finalised plans to reduce output this year.
Uncertainty surrounding this year's RKABs is causing concerns over supply availability. This, along with weather-related delays to mining operations and the decision by a major Sumatra-based producer to declare force majeure on shipments, has contributed to a rise in coal prices in recent weeks.
Several Indonesian coal mining companies have said that details of their 2026 volumes and the cuts to RKABs that are being circulated in the market are still visible on the ESDM monitoring system against the respective company names, despite them not having received formal notices.
The ESDM today moved to debunk recent market talk of significant output cuts for some companies, which it says are not correct, and said that it is still finalising actual volumes.
The ministry is taking into consideration non-tax state revenue collections from coal producers in determining their respective output quotas for this year, an ESDM official told Argus.
The ESDM last year reverted to granting annual RKAB approvals, compared with three-year approvals previously, to give it more control over coal production. It called for coal mining companies to submit their proposals before November 2025, the official said. But late submissions and delays in processing have prompted the ESDM to allow mining companies to use their previously approved three-year RKABs as the basis for coal mining operations during first quarter of this year, while the new RKABs are still being processed, the official added.
Jakarta said in early January that it is looking to cut Indonesia's coal output to 600mn t in 2026 in an attempt to prop up coal prices, following several years of price declines caused by high supply and weaker demand in the international market.
Indonesian coal output has increased for several straight years. Production in 2025 reached 790mn t, surpassing a 740mn t target for the year, the ESDM official said.
By Antonio delos Reyes
