S. Sumatra hauling ban cuts 6.3 million tons of coal output a month

Wednesday, February 11 2026 - 10:34 PM WIB

By Cepi Setiadi

A hauling ban in South Sumatra has halted coal transport from 34 mining companies, cutting an estimated 6.3 million tons of production per month and disrupting domestic supply, according to the Indonesian Mining Professionals Association.

FH Kristiono, Head of Coal Studies at PERHAPI, said an instruction issued by the Governor of South Sumatra effective Jan. 1, 2026 forced dozens of miners to suspend hauling activities, even though many had secured crossing permits from the Ministry of Transportation.

Of the 34 affected companies, 12 are involved only in road crossings over national roads, while 22 use at grade crossings along national roads, Kristiono said during PERHAPI’s Mining for Journalists Workshop on Feb. 10.

He noted that authority over national road crossings rests with the central government. Despite permits issued through the Directorate General of Land Transportation, hauling remains prohibited.

Read also: S. Sumatra targets 2027 completion of rail flyovers to ease coal logistics bottlenecks

As a result, about 6.3 million tons of coal per month could not be transported over the past month. Of that volume, around 1.6 million tons were allocated for the domestic market obligation, potentially affecting local supply.

Kristiono estimated potential losses in non tax state revenue at about Rp635 billion in a single month due to stalled shipments.

Following discussions between PERHAPI and the provincial government, 12 companies have been allowed to resume crossing activities. However, 22 miners remain unable to transport coal.

The provincial government has asked PERHAPI to formulate criteria and a hauling policy model that could also serve as a reference for other provinces such as Jambi and Bengkulu, which face similar constraints.

Kristiono said six of the 22 affected companies had already stopped operations since June 2025 after the collapse of a hauling bridge, which prompted tighter restrictions.

He urged local authorities to introduce transitional policies allowing companies to continue hauling while gradually developing dedicated infrastructure, arguing that infrastructure investment requires stable cash flow from ongoing operations.

With the ban still in place, coal stockpiles have accumulated at mine sites as production continues without transport access, he said.

Editing by Alexander Ginting

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