Musi Banyuasin to ban coal haulage on public roads from January 2026

The Musi Banyuasin (Muba) regency administration in South Sumatra will impose a full ban on coal transportation using public roads starting January 1, 2026, following a provincial directive aimed at protecting infrastructure and improving road safety, local media reported.

The decision implements South Sumatra Governor instruction which mandates that all coal haulage activities be removed from public roads. The policy was reaffirmed during a coordination meeting held at the Muba regency office on Monday.

Assistant for Economic and Development Affairs Alva Elan said the ban would be enforced without exception, citing severe road damage and rising accident risks linked to coal truck traffic. He said the local government was committed to restoring public road conditions and reducing safety hazards.

Under the policy, coal producers and transporters are required to use dedicated hauling roads or rail transport. Muba Transportation Agency head Musni Wijaya said the instruction now serves as the legal basis for enforcement and has been disseminated across all districts in South Sumatra.

However, industry representatives raised concerns over the limited transition period, arguing that roughly one year was insufficient to build new hauling roads, particularly given lengthy land acquisition processes. Smaller operators, in particular, said they lacked the financial capacity to develop dedicated infrastructure.

To address these concerns, the regency has proposed collaborative solutions, including shared use of existing hauling roads and greater reliance on rail transport. PT Marga Bara Jaya, which has operated a dedicated hauling road since 2023, indicated its willingness to offer a shared-use arrangement. The company noted, however, that its road has a maximum capacity of about 2,000 trucks per day, well below the estimated 5,000 coal trucks currently using public roads, leaving a significant shortfall.

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Cost has emerged as a key sticking point. The Coal Transport Consortium (KAB) said the current rental rates for dedicated hauling roads were too high and risked inflating operating costs, potentially making Indonesian coal less competitive. KAB formally requested the local government to act as a mediator to help reach a more acceptable pricing arrangement.

In response, Musni said the Transportation Agency would facilitate dedicated negotiations between KAB and PT Marga Bara Jaya. If talks fail, the regency plans to propose the introduction of a ceiling tariff for hauling road usage to the South Sumatra governor as a last-resort measure. The proposal has drawn objections from some operators, who argue that price intervention could harm the investment climate.

Law enforcement officials said supervision would be intensified through the end of the transition period on December 31, 2025, with enforcement focused on overloaded vehicles, operating hours and documentation compliance. From January 1, 2026, coal trucks found using public roads will face immediate ticketing and detention.

The regency administration warned that companies failing to cooperate with mediation efforts or comply with the ban could be recommended for administrative sanctions at the provincial level.

Editing by Alexander Ginting