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Indonesia plans to raise coal output carefully to balance supply and demand

10 Jun 2026 15:06 reported by Gianna Chen

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Indonesia is considering moderately raising coal production limits to seize opportunities from strong global commodity prices, while maintaining supply-demand balance.

The Energy Minister stated that output changes would be strictly overseen. The Indonesian Mining Association supports the move, saying it would help miners cope with rising costs driven by a strong US dollar. 

Some mines have already halted operations due to quota cuts and higher expenses; easing limits could keep them running and save jobs.

As the world's largest thermal coal exporter, Indonesia's policy shift will be closely watched by global markets. Analysts say any actual impact on coal prices will depend on the scale of the increase and future demand.

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