DMO VOLUME HAVING BULLISH TREND?

Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that he would increase the coal DMO volume to above 25 per cent of production. The DMO increase was implemented to meet growing domestic demand, including for PLN's coal power plants. (Kontan)

SECOND PERIOD OF HBA IN NOVEMBER

Ministry of Energy and Mineral Resources has officially set the Reference Price for Coal (HBA) for sales in the second period of November 2025. HBA for 6,322 kcal/kg GAR is set at US$102.03 per ton; HBA for 5,300 kcal/kg GAR is set at US$67.29 per ton. Second HBA for 4,100 kcal/kg GAR is set at US$44.29 per tonne. Third HBA for 3,400 kcal/kg GAR is set at US$33.88 per ton. (CNBCInd.com)

COAL EXPORTS UNDER PRESSURE

Data of Statistics Indonesia shows that coal exports remained under pressure during the first nine months of this year. The value of exports from January to September 2025 decreased at 20.85% year on year (yoy) to US$17.94 billion. The volume of national coal exports also decreased at 4.74% yoy to 285.23 million tons. (Kontan)

PRODUCTION-SALES IN THE THIRD QUARTER OF 2025

Until the third quarter of 2025, PT Bukit Asam's coal production volume was reported to have increased at 9% year on year (yoy) to 35.90 million tons from the target at 50.05 million tons. Meanwhile, sales volume grew at 8% yoy to 33.70 million tons from the target at 50.09 million tons. (Kontan)

GLOBAL COAL MARKET HAVING IMPROVEMENTS

PT Bumi Resources Tbk stated that it is not concerned about the sentiment of a decrease in national coal production in 2026. In fact, Bumi believes that the global coal market will improve. Based on internal analysis, a number of major countries are likely to increase coal orders from Indonesia. (Kontan)

CLOSING THE 40 COAL POWER PLANTS

South Korea has announced its commitment to close the 40 coal power plants in 2040. This step was taken after joining the Powering Past Coal Alliance (PPCA). The announcement was made at the COP30 Climate Summit in Brazil, making South Korea the second country in Asia, after Singapore, to join the coalition. (CNBCInd)

DECREASING PRODUCTION OF RAW COAL

According to data from the National Bureau of Statistics of China (NBS), raw coal production in China in October was approximately at 406.75 million tonnes. It decreased at 2.3% year-on-year (YoY). October production also decreased approximately at 1.2% compared to September. This decrease was a continuation of the slowdown in production in previous months. (CNBCInd)

VARIOUS LEVIES IN THE COAL INDUSTRY

Executive Director of APBI-ICMA, Gita Mahyarani said that her party is trying to understand every fiscal policy set by the government. However, she said that currently the coal industry is already burdened with various levies, both fiscal and non-fiscal, throughout the production chain. (Bisnis)

66.52% SUPPORTED BY COAL STEAM POWER PLANTS

The Ministry of Energy and Mineral Resources noted that coal still plays a very important role, particularly in maintaining the reliability of the national electricity supply. Per October 2025, electricity production by PLN and IPP had reached at 290 TWh of total 193.22 TWh or 66.52% coming from coal. (CNBCInd)

COAL PRODUCTION TARGET IN 2026

Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources, Tri Winarno, said that the government is conducting a comprehensive evaluation of coal production targets. However, it is certain that next year's production target is expected to be below 700 million tonnes. (CNBCInd)

CO-FIRING USED IN 47 POWER PLANTS

Acting Director General of Electricity, Tri Winarno, said that the use of biomass through co-firing technology until October 2025 has been applied in 47 power plants in various regions. This represents significant progress, considering that in 2020 only six power plants were implementing co-firing programmes. (CNBCInd)

EXPORT DUTIES HAVING BURDEN ON INDUSTRY

The Indonesian government plans to impose export duties on coal exports to increase state revenue and encourage downstreaming. The press reported that this policy has raised concerns among entrepreneurs as it could add to the burden on the industry. (Bisnis)

OBTAINING THE FINANCING FACILITIES FROM 3 BANKS

PT Bukit Asam Tbk is accelerating the realization of its strategic project to build a Coal Handling Facility (CHF) and Train Loading Station (TLS) 6–7 on the Tanjung Enim – Kramasan coal transport route. For this project, Bukit Asam has secured financing facilities at IDR3.56 trillion from Bank Mandiri, Bank BNI, and BRI. (Liputan6.com)

MOMENTUM TO ACCELERATE THE DIVERSIFICATION

Senior Market Analyst at Mirae Asset Sekuritas, Nafan Aji Gusta, said that the threat of a decrease in national coal production in 2026 should be a momentum for issuers to accelerate diversification beyond coal. (Kontan)

HIGH PRODUCTION, DROPPING EXPORT VALUE

Data from the Statistics Indonesia (SI) shows that coal production reached at 308.67 million tons in 2024, the highest in the last five years, in contrast to export value, which fell dramatically from US$25.7 billion (2022) to only US$9.02 billion (2024). This volatility shows how vulnerable the regional economic foundation is, according to the analysts. (Bisnis)

ANTICIPATORY MEASURES THROUGH CAPEX

CEO of Edvisor Provina Visindo, Praska Putrantyo said that coal issuers could take anticipatory measures in response to the expected decrease in production in 2026 by reducing production costs and evaluating capital expenditure (capex) for the purchase of mining equipment and heavy equipment. (Kontan)

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