Indonesia, the world’s largest producer of thermal coal and nickel, may relax current output restrictions if prices remain high, according to Energy Minister Bahlil Lahadalia following a meeting with President Prabowo. “If the prices remain stable, good, we may do what we call a measured relaxation on production plans,” he said, emphasizing that any adjustment will be calibrated to market conditions and the balance of supply and demand.
The government had previously planned to curb mining production this year to help support prices. Coal output has been targeted at 600 million metric tons, down from around 790 million tons last year. For nickel, the mining quota (RKAB) has been set at 260–270 million tons, below the estimated 340–350 million tons in demand from smelters, according to industry group FINI.
However, RKAB quotas are not fixed and can be revised. Mining companies are required to submit annual production plans for government approval, giving authorities room to adjust output in line with price movements and evolving market needs.
