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Indonesia is set to approve a 2026 coal production quota of around 600 million tons and will adjust its nickel quota
Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia said Thursday that Indonesia may approve a coal production quota of approximately 600 million tons for 2026 and will adjust its nickel quota based on industry demand. Although Indonesia’s actual coal production often exceeds the quota, the quota level will be lower than last year’s 790 million tons. Bahlil said the reduction in the quota is intended to support prices for Indonesia’s mineral products, and similar measures will be implemented to prop up nickel prices. However, he did not disclose the 2026 quota level, merely reiterating that quotas would be adjusted to meet the needs of local smelters. He stated: “ “We are currently calculating the industry’s production capacity, and we must be able to supply that capacity.” ” The Indonesian Nickel Smelters Association (FINI) estimates that domestic smelters’ demand for nickel ore will rise from approximately 300 million tons in 2025 to about 340 million to 350 million tons in 2026, with new production capacity expected to come online this year. Concerns over a decline in Indonesia’s nickel production caused global nickel prices to surge last December.
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