Energy and Mineral Resources Minister Bahlil Lahadalia stated on Thursday (3/26/2026) that the government is likely to implement a "measured relaxation" of coal and nickel production quotas in response to the surge in global commodity prices triggered by the U.S.-Iran conflict."If prices remain stable and favorable, we will introduce measured relaxation in production planning," he remarked during a briefing published via the State Secretariat’s YouTube channel.The Ministry of Energy and Mineral Resources initially set the 2026 coal production quota at 600 million tons, a significant decrease from the 2025 realization of 790 million tons due to previous oversupply issues.However, the recent blockade of the Strait of Hormuz has disrupted global oil and gas distribution, causing coal prices to spike past USD 130 per ton.President Prabowo Subianto has instructed relevant ministries to optimize state revenue by capitalizing on these "windfall profits."Under the proposed plan, the government will revise the 2026 Work Plan and Budget (RKAB) to adjust production targets, while remaining cautious in balancing international supply and demand to maintain price stability.In addition to coal, the government is also considering easing restrictions on nickel ore, which was previously capped at approximately 260 million tons for 2026 to support market prices.The move reflects the government's flexible approach to balancing price stability with supply resilience and the optimization of state revenue amidst volatile global market dynamics.
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