Indonesia has approved 95% of the production quota applications submitted by coal mining companies for the year 2026, according to the Ministry of Energy and Mineral Resources. Tri Winarno, the ministry’s Director General of Minerals and Coal, announced the figures on September 29, noting that the remaining 5% of work plans and budgets, known locally as RKAB, remain under administrative review.
Production Forecast and Quota Approvals
The Ministry of Energy and Mineral Resources kept Indonesia’s national output forecast for the year unchanged at approximately 720 million tonnes, according to Bloomberg, as cited in the article. This target averages out to roughly 60 million tonnes of coal production each month. Tri Winarno declined to release specific tonnages for the individual company RKAB filings that have cleared the approval process so far.
The annual RKAB filings serve as the primary regulatory mechanism establishing production limits for every active miner in the country. While the vast majority of these operational roadmaps are now approved, the pending status of the final 5% highlights ongoing administrative processing by the ministry.
Coal Trade Governance and Private Sector Role
Luke Thomas Mahony, CEO of PT Danantara Sumberdaya Indonesia (DSI), stated that the upcoming coal trade governance framework will not displace private companies from commercial operations, as reported by Mysteel.
Under this planned framework, independent producers and exporters will maintain direct contract negotiations with international buyers regarding product specifications, pricing, and shipment logistics. Private firms will continue to manage physical commodity movements and payment flows independently.
Transparency Measures and Pricing Oversight
DSI’s operational focus under the new trade governance model centers on bolstering transaction transparency across the supply chain, connecting primary contract data directly to final financial settlement. According to Mahony’s statements via Mysteel, the oversight mechanism will track pricing formulas, quality metrics, premiums, discounts, vessel details, and commercial invoices to detect potential under-invoicing or inappropriate transfer pricing.
To ensure fair commercial practices, DSI plans to form an industry-representative methodology committee. This body will comprise producers, industry associations, traders, and market participants to establish reference benchmarks and evaluate legitimate adjustments based on coal quality and transaction terms.
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