Indonesia to cap 2026 coal output below 700 million tons
Time:Wed, 19 Nov 2025 08:50:47 +0800
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Indonesia, the world's largest thermal coal exporter, plans to substantially reduce its coal production in 2026 to stabilize global prices affected by oversupply. Energy and Mineral Resources Minister Bahlil Lahadalia confirmed the reduction last Friday, saying the final volume will be less than the 2025 output.
Tri Winarno, Director General of Mineral and Coal, later indicated that 2026 production would be capped below 700 million tons. This downturn comes after an expected 2025 output of around 750 million tons, significantly less than the 836 million tons produced in 2024.
The move occurs because the benchmark Indonesian coal price (HBA) dropped to $103.75/ton in early November. Despite export cuts, the government will prioritize the domestic market obligation (DMO), keeping the utility price fixed at $70/ton.
