Government approves 300 million tons in coal production work plans

The Ministry of Energy and Mineral Resources (ESDM) said it has completed approvals for part of the 2026 Work Plans and Budgets (RKAB) submitted by coal mining companies, with a combined production quota approaching 300 million tons.

Overall, the ministry plans to set the national coal production quota at 600 million tons in 2026, about 190 million tons lower, or nearly 24% below the 2025 production realization of 790 million tons.

The government adopted the policy to reduce the production quota in order to help maintain global coal price stability, prevent oversupply, and optimize the value of mining resources.

Director General of Mineral and Coal at the ESDM Ministry, Tri Winarno, said the RKAB approval process is still ongoing.

“Coal RKAB approvals are currently around 250 million tons, approaching 300 million tons that have been approved,” he told Kontan on Thursday (March 12).

Tri said the approvals cover a number of mining companies, including some holders of Coal Contracts of Work (PKP2B). However, not all former PKP2B companies have obtained approval.

 “Some PKP2B holders have received approval, while others have not. Arutmin has not yet. PTBA has already been approved,” he said.

He confirmed that PT Bukit Asam Tbk (PTBA) has secured its RKAB approval, while PT Arutmin Indonesia has not yet received approval. The exact number of companies whose RKAB has been approved has not been disclosed.

The government’s decision to adjust production in the 2026 RKAB approval process for the mineral and coal sector has raised concerns among industry players. Mining companies have already prepared long-term plans involving significant investments to increase production.

At the same time, coal supply for domestic demand, particularly for coal-fired power plants (PLTUs), has also become a point of debate. Uncertainty surrounding RKAB approvals has reportedly caused coal stockpiles at several PLTUs to thin due to tight supply.

Read also : Govt to complete coal RKAB approvals by March

In some cases, the days of operation (HOP) at independent power producers (IPPs) fell to as low as six days, far below the ideal HOP level of 25 days.

In contrast, state utility PT Perusahaan Listrik Negara (PLN) President Director Darmawan Prasodjo said the HOP level at PLN-operated power plants remains relatively secure, currently above 19 days.

 “The availability of primary energy stands at more than nine days for gas, more than nine days for fuel oil, and more than 19 days of operations for coal. So at present the situation is safe, especially for the homecoming travel period,” Darmawan said on Thursday (March 12).

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said the government will ensure that coal supply for PLTUs, particularly to maintain electricity supply during the Eid al-Fitr (Lebaran) holiday period, remains sufficient.

“For the Lebaran period, we will continue supplying coal under the Domestic Market Obligation (DMO) scheme, and there has been no increase. The same applies to subsidized fuel,” he said.

PLN has secured coal supply from eight mining companies. Previously, PLN’s Director of Generation Management Rizal Calvary Marimbo said supply from these companies would ensure PLN’s coal reserves remain sufficient until August 2026.

The companies are PT Adaro Andalan Indonesia, PT Arutmin Indonesia, PT Berau Coal, PT Kaltim Prima Coal, PT Kideco Jaya Agung, PT Multi Harapan Utama, PT Indominco Mandiri, and PT Bukit Asam.

 “The total supply will be around 84 million metric tons, which will be sufficient until August,” Rizal said.

Editing by Reiner Simanjuntak