KONTAN.CO.ID – JAKARTA. The Publish What You Pay (PWYP) Indonesia Coalition urges the government to immediately implement its plan to reduce national coal production.
The policy, PWYP argues, must not stop at a pragmatic step to support global commodity prices; it should instead become a long-term strategy to end dependence on fossil fuels.
PWYP Indonesia National Coordinator Aryanto Nugroho said the recent discourse on reducing coal production was triggered by the sharp decline in coal and nickel prices due to global oversupply.
He cited a statement by the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, who said that Indonesia’s coal supply accounts for nearly 50 percent of global trade—around 500–600 million tons out of a global volume of 1.3 billion tons.
According to Aryanto, this situation should provide an important impetus for the government to correct its production policies, as mandated by the National Energy Plan (RUEN).
“The government should not merely be reactive when prices fall due to oversupply. If the sole objective is to push prices up in order to maintain state revenue, that is not a strategic policy, but merely market stock management,” Aryanto said in an official statement on Wednesday (January 7, 2026).
He emphasized that coal production cuts must be grounded in a transformative vision—one that protects the environment and accelerates the national energy transition.
“Not simply to save corporate profit margins,” he stressed.
Aryanto added that the surge in coal production to around 800 million tons in 2024 is clear evidence that Indonesia’s energy transition continues to face serious obstacles.
“We cannot talk about an energy transition if, on the upstream side, coal supply continues to be ramped up without control,” he said.
PWYP Indonesia is pushing for a gradual reduction in production to 400 million tons, in line with the RUEN mandate.
That target, Aryanto said, must become a binding commitment within the national decarbonization roadmap.
“This is a concrete step to align national energy policy with global climate commitments,” he concluded.
Source: Kontan