Miner warns S. Sumatra coal output at risk from public road hauling ban

By Romel S. Gurky

The planned enforcement of a ban on coal hauling via public roads in South Sumatra from January 1, 2026 could significantly disrupt coal production and domestic supply if implemented without a gradual transition, according to PT UCoal Sumberdaya CEO F.H. Kristiono.

South Sumatra accounts for around 29% of Indonesia’s national coal reserves, making it the country’s second-largest coal-producing region after East Kalimantan. The province had targeted an increase in coal output to 134 million tonnes per annum (mtpa) in 2026, up from about 106 mtpa last year. However, Kristiono said this target is now uncertain following the issuance of Governor’s Instruction which prohibits the use of public roads for coal transportation starting next year.

“If the regulation is enforced in full from January 1, 2026, as many as 34 coal mining companies could be forced to halt production because they still rely on public roads for hauling,” Kristiono said. He estimated this would represent the loss of about 28% of South Sumatra’s coal output from a total of 121 mining permits.

Read also: UCoal plans to boost coal output in 2026

Kristiono added that the impact would extend beyond the provincial level, warning of potential supply disruptions to state utility PT PLN (Persero). He estimated a reduction of around 875,000 tonnes of coal supply per month to PLN, which could pose risks to electricity supply, particularly in the Java–Bali grid.

The South Sumatra provincial government has reiterated that the ban will be enforced strictly. The provincial Transportation Agency has stated that all coal trucks and heavy equipment must use dedicated mining roads from January 1, 2026, and that sanctions will be imposed on violators in accordance with prevailing mining and transportation laws.

While acknowledging the government’s objective to reduce road damage, congestion, and safety risks, Kristiono urged policymakers to adopt a more phased and evaluative approach. He said the policy would be more effective if implemented gradually, taking into account the actual progress of dedicated haul road and railway development, the readiness of alternative infrastructure in different regions, and the need for a controlled transition period.

He also emphasized the importance of continuous dialogue between the provincial and district governments, relevant ministries, and mining companies to balance infrastructure, environmental, and energy security considerations.

“A staged and well-managed transition would help avoid production shocks, protect energy supply, and still move toward the long-term goal of eliminating coal hauling on public roads,” Kristiono said in his social media account upload.

Editing by Alexander Ginting