Coal - Govt reduce 33% yoy 2026 output, raise DMO to 30%

Coal - Govt reduce 33% yoy 2026 output, raise DMO to 30% Director General at the Ministry of Energy and Mineral Resources (ESDM) announced plans to reduce Indonesia’s 2026 coal production to slightly above 600 mt, compared with 790 mt realized in 2025. The adjustment reflects domestic industrial demand projections and supply requirements for PLN. PKP2B Generation I holders and SOEs with IUP licenses will not face production quota reductions. However, they are required to increase their Domestic Market Obligation allocation to 30%, up from the current 25%, effective at the beginning of this year. (Source : Bisnis Indonesia) Comment : Under the tighter 2026 supply framework and higher DMO requirement, the pecking order remains AADI > PTBA > ITMG.