- Output capped at 600 mnt in 2026 to boost prices
- Delayed RKAB approvals limit spot exports
Mysteel Global: Indonesia has approved coal miners’ 2026 Work Plans and Budgets (RKAB) covering nearly 400 million tonnes (mnt), though the process remains incomplete, according to the Indonesian Ministry of Energy and Mineral Resources.
The ministry aims to finalise all approvals by the end of March, said Tri Winarno, Director General of Minerals and Coal, as cited by local media on 17 March.
Indonesia plans to cap coal output at around 600 mnt in 2026, down from 790 mnt produced in 2025, in an effort to rein in supply and boost global prices.
To mitigate disruption from the delayed approvals, the ministry has allowed miners that have submitted RKAB applications to produce up to 25% of their previously proposed volumes during the first quarter.
However, the prolonged approval process has raised concerns among producers about future output levels. Many miners have consequently held back spot exports, prioritising long-term contract commitments amid uncertainty over final quota allocations.
Earlier, Tri Winarno noted that several major coal producers, including state-owned Bukit Asam and private giant Adaro, had already secured quota approvals.
Separately, the ministry has also approved around 100 mnt of nickel ore quotas while planning to reduce the total to 260-270 mnt in 2026 from 379 mnt in 2025.
Indonesia may revise both coal and nickel ore quotas in June-July. Market participants cautioned that any additional quota releases during the mid-year adjustment could increase supply and weigh on prices.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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