December 20, 2025 | 10:26 pm
TEMPO.CO, Jakarta - Indonesia will cut back on coal and nickel production next year, confirmed Minister of Energy and Mineral Resources Bahlil Lahadalia. The measure will be taken to maintain market price amid the declining global coal prices.
"About 1.3 billion tons of coal are traded, but Indonesian supplies around 500-600 million tons, almost 50 percent," said Bahlil in a press conference at his office on Friday, December 19, 2025, adding that excessive supply leads to lower commodity prices.
Thus, coal magnates must obtain fair pricing to ensure the country also earns appropriate income.
Indonesia must also maintain coal reserves for future generations. One way to control production is through the Work Plan and Budget (RKAB). "We want to implement all disciplines, we must preserve the environment," said Bahlil.
Bahlil reminded coal business actors to abide by government regulations and threatened to review their RKAB. "I've examined those who are compliant with state regulations, but I have yet to do so for the others," Bahlil said.
Previously, the Director of Coal Business Development at the Directorate General of Mineral and Coal, Surya Herjuna, said Indonesia's coal reserves amount to 31.95 billion tons. But 73 percent of these reserves are low-calorie, 8 percent medium-calorie, and 5 percent high-calorie coal.
Low-calorie coal reserves amount to 24.1 billion tons, medium-calorie 4.5 billion tons, and high-calorie 3.4 billion tons. In terms of resources, Surya said that Indonesia is not very competitive at present. This number is lower than the total coal resources recorded at 97.96 billion tons.
The composition is 67.3 billion tons of low-calorie coal, 15.5 billion tons of medium-calorie, and 15.1 billion tons of high-calorie.
"They are often located in difficult-to-clear forest land, so we will automatically have difficulty competing in the global market," Surya said at the 2nd Coalindo Coal Conference in Jakarta on Wednesday, November 5, 2025.
Read: Indonesia Eyeing to Earn Rp23 Trillion from Coal, Gold Export Duties
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