Indonesian Minister: If nickel and coal prices remain high, production quotas may be relaxed

MaticHoleFiller · 2026-03-26T21:01:49+00:00

Indonesia's Energy Minister stated that if the prices of thermal coal and nickel remain high, Indonesia may relax the production quotas for these two commodities. Currently, Indonesia has reduced the production quotas for coal and nickel ore to address market supply and demand, and insists that the annual production plan be approved by the government.

MaticHoleFiller

2026-03-26 21:01:49

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Indonesian Energy Minister Bahlil Lahadalia stated that as the world’s largest producer of thermal coal and nickel, Indonesia may relax production quotas for these resources if their prices remain high. After meeting with President Joko Widodo on Wednesday evening, he said, “If prices stay stable and trend well, we might implement a so-called moderate easing of production plans. Everything will still be coordinated based on market conditions and supply and demand.” Indonesia has announced plans to cut mining quotas for various minerals this year to support prices. The country has reduced coal production quotas from about 790 million tons last year to 600 million tons. The Indonesian Ministry of Energy said the nickel ore (RKAB) quota is set between 260 million and 270 million tons, below the estimated demand of approximately 340 million to 350 million tons by the Indonesian Nickel Industry Association (FINI). RKAB quotas are subject to revision. Rich in mineral resources, Indonesia requires all mining companies to submit annual production plans to the Ministry of Mines for final approval. Indonesia is the world’s largest exporter of thermal coal and nickel products.

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