Indonesia coal production quotas and export rules spark economic concerns

New government regulations regarding coal production quotas and export management are creating significant economic pressures in Indonesia. A study by the East Kalimantan Regional Research and Innovation Agency (Brida) indicates that production quota limits for 2026 have triggered a negative multiplier effect on micro, small, and medium enterprises (MSMEs) in mining areas. Approximately 68 percent of surveyed MSMEs reported revenue declines between 35 and 55 percent, while 17 percent of businesses were forced to close permanently. Total economic losses in these supporting sectors are estimated at 3.1 trillion rupiah per year.

Simultaneously, the Indonesian Coal Mining Association (APBI) has warned of potential export disruptions starting January 1, 2027. Under Government Regulation No. 24 of 2026, the export of strategic natural resources, including coal, palm oil, and ferroalloys, must be channeled through the state-owned export entity, PT Danantara Sumberdaya Indonesia (DSI). APBI leadership emphasized that this transition must be managed carefully to avoid logistical and administrative obstacles that could hinder national coal exports.