Indonesia Signals Output Relaxation as Coal, Nickel Stay Firm

EthereumCraftsman · 2026-03-26T03:30:50+00:00

Indonesia may relax mining output restrictions for coal and nickel if prices remain high, according to Energy Minister Bahlil Lahadalia. The government had initially planned to cut production to support prices, with current coal and nickel quotas set below demand.

EthereumCraftsman

2026-03-26 03:30:50

Abstract generation in progress

Indonesia, the world’s top producer of thermal coal and nickel, may ease output restrictions if prices stay elevated, Energy Minister Bahlil Lahadalia said after meeting President Prabowo. “If the prices remain stable, good, we may do what we call a measured relaxation on production plans,” he noted, adding that any move will be aligned with market conditions and supply-demand dynamics. The government had earlier planned to curb mining output this year to support prices. Coal production is targeted at 600 million metric tons, down from roughly 790 million tons last year. For nickel, the ore quota (RKAB) has been set at 260–270 million tons, below the estimated demand of 340–350 million tons from smelters, according to industry group FINI. However, RKAB quotas remain flexible and subject to revision. Mining companies must submit annual production plans for government approval, allowing authorities to adjust output in response to price trends and market needs.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.