- One-year RKAB system to keep Indonesian coal supply tightly controlled
- Annual quota uncertainty could support coal prices and limit supply flexibility
Indonesia’s energy ministry said on Monday it will keep its annual mining work-plan system for 2027, Bloomberg Technoz has reported, ruling out a return to the three-year cycle that miners had sought for more certainty.
Tri Winarno, director general of minerals and coal at the Energy and Mineral Resources Ministry (ESDM), said the one-year rule is a joint decision with clear legal backing. He was speaking after a meeting on 31 August.
Starting from the first day of this year, the ESDM officially cut the validity of the Rencana Kerja dan Anggaran Biaya (RKAB) — the document miners must file to secure output quotas — from three years to one. Firms must now submit plans between 1 October and 15 November each year.
For coal, the change gives Jakarta tighter control over supply. In order to boost global prices, ESDM had set the 2026 coal output target at near 600 million tonnes, well below the 817 million tonnes mined in 2025, as reported.
The Indonesian Coal Mining Association (APBI) warned that the short filing window of only about six weeks hurts planning and contract fulfilment. This week, the Indonesian Chamber of Commerce (Kadin) urged the ministry to publish the quota formula and give a clear approval timetable, so firms know their 2027 limits before January, local media reported on 28 August.
With the work plan for next year now limited to just 12 months, miners must resubmit their 2027 plans under the new rule. An auto-approval clause — approval within eight working days or the plan is deemed passed — may ease bottlenecks. Yet the yearly reset keeps supply on a short leash, and the market will watch each October window closely, sources tell Mysteel Global.
Note: This article is published as part of a content sharing agreement between Mysteel Global and BigMint.
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