APBI flags early-year policy headwinds for coal exports in January
Tuesday, January 20 2026 - 05:45 PM WIB
By Cepi Setiadi
The Indonesian Coal Mining Association (APBI) has acknowledged that Indonesia’s coal export performance in January 2026 is under pressure from a range of policy-related challenges emerging at the start of the year, particularly delays in Work Plan and Budget (RKAB) approvals and logistical constraints in key producing regions.
APBI Executive Director Gita Mahyarani said several coal producers have reported limited supply availability as they navigate regulatory uncertainty and transitional arrangements introduced for 2026.
“Looking at coal exports in January 2026, there are indeed several challenges arising from policy dynamics at the beginning of the year,” Gita told Petromindo.com on Tuesday (Jan. 20).
She noted that approvals for new 2026 RKABs are still being processed by the Ministry of Energy and Mineral Resources (MEMR), following the government’s decision to revert RKAB approvals to an annual basis. However, companies are still allowed to operate under a temporary provision issued by the Directorate General of Minerals and Coal.
“Companies can continue operating by referring to a circular letter that allows production of up to 25% of previously approved three-year RKABs,” Gita said, adding that coal production activities can continue operationally while approvals are pending.
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The temporary measure, which is valid until the end of March 2026, was introduced to provide continuity amid RKAB delays, even as the government signals its intention to cut the country’s coal output this year to around 600 million tonnes, down from an estimated 790 million tonnes in 2025, as part of broader efforts to rebalance supply and support prices.
Beyond RKAB-related issues, APBI highlighted the significant impact of a regional policy banning the use of public roads for coal transportation in South Sumatra, one of Indonesia’s key coal-producing provinces.
“In South Sumatra, most companies are no longer able to use public roads. As a result, dozens of companies are still unable to carry out coal shipments and sales,” Gita said. “This has had a significant impact on regional performance.”
Meanwhile, uncertainty surrounding the government’s proposed coal export duty has yet to directly affect export volumes, as the policy remains under discussion.
“Since the tariff levels and implementation mechanism have not been finalized, the coal export duty has not had a direct impact on export performance so far,” Gita said.
The government is currently studying an export levy linked to coal price levels, alongside plans to reduce Indonesia’s overall coal production target in 2026. Both measures form part of a broader policy recalibration that continues to shape industry sentiment and operational decisions at the start of the year.
Editing by Reiner Simanjuntak