MEMR asks BUPR to sharply cut 2026 coal output plan

By Dominikus

The Ministry of Energy and Mineral Resources (MEMR), through the Directorate General of Mineral and Coal (Minerba), has asked Central Kalimantan-based coal mining company PT Bara Utama Persada Raya (BUPR) to revise its planned coal production for 2026 from the originally proposed 600,000 tonnes to 21,000 tonnes.

“In November 2025, BUPR and PT Barindo Multi Sejahtera (BMS) submitted a work and budget plan to Minerba for review and endorsement. In mid-February 2026, during the course of such review, Minerba requested PT Bara to revise its planned coal production for 2026 from the originally proposed level of 600,000 tonnes to 21,000 tonnes. Following the submission of the revised plan, approval is expected to be obtained by March 2026,” said Liu Liyang, Executive Director of Zhongzheng International Company Limited, BUPR’s parent company last week.

Liu said the request appears to be part of a broader industry wide administrative initiative by Minerba aimed at moderating national coal output to support and stabilize domestic coal prices.

The group is maintaining communication with the relevant authorities and monitoring policy developments, while evaluating the operational implications of the revised production plan for 2026.

“The group is assessing the operational implications of the revised production plan for 2026 and will make appropriate adjustments to its business strategies to ensure regulatory compliance while preserving the economic development of its coal mining business,” Liu said.

Looking ahead, the company said the prospects of its coal mining business will depend on the evolving regulatory landscape in Indonesia. While the revised production level may affect the scale and pace of operations in the near term, the company said it will continue discussions with authorities and may consider seeking adjustments to increase production if operational readiness and policy conditions allow.

The coal resource estimate as of Dec. 31, 2025 totaled 26.19 million tonnes, slightly declining from 26.21 million tonnes recorded as of June 30, 2025. Measured coal resources stood at 8.56 million tonnes, down 0.19% from 8.58 million tonnes previously due to coal production activities. Meanwhile, indicated resources remained unchanged at 11.54 million tonnes and inferred resources also stayed stable at 6.10 million tonnes over the same period.

Read also: BUPR hires new mining contractor to boost coal production

The group’s coal mining business is conducted through its 99.98% owned indirect subsidiary PT Bara Utama Persada Raya, which holds a mining license for a coal mine in Central Kalimantan.

During the period under review, revenue from the segment dropped about 86.7% to approximately $24,700 from around $185,500 in the same period of the previous year. Segment results also swung from a profit of about $115,800 to a loss of approximately $87,300.

The decline was partly due to the suspension of mining activities by the previous contractor PT Nusantara Energi Thermal since early 2025. Negotiations with a new contractor, PT Barindo Multi Sejahtera (BMS), continued until the signing of a new exclusive cooperation agreement in October 2025. During the transition period between May and October 2025, the company conducted only limited mining and sales activities to maintain a minimum level of production.

Following the execution of the BMS agreement, BMS took over mining operations at the PT Bara mine in late October 2025. However, coal production and sales were later disrupted between late November and December 2025 due to a mechanical breakdown of the conveyor belt at the barging port used for coal loading. The equipment has since been repaired.

BUPR’s mining concession, located in Barito Timur Regency, Central Kalimantan, covers 4,093 hectares. The coal has a calorific value ranging from 4,200 to 6,900 Kcal/kg, allowing the mine to serve multiple market segments.

Zhongzheng International controls 99.99% of BUPR through its Indonesian subsidiary PT Karya Dasar Bumi.

Editing by Reiner Simanjuntak