Coal Output Cuts

TEMPO.CO, Jakarta - Flying from East Kutai Regency in East Kalimantan, Mahyunadi brought his concerns over the government's decision to cut coal production quotas in the 2026 Work and Budget Plan (RKAB) to the Directorate-General of Minerals and Coal at the Energy and Mineral Resources Ministry in South Jakarta on Tuesday, June 23, 2026. The East Kutai Deputy Regent arrived with two aides, a member of the East Kutai Regional Legislative Council, and representatives from four mining companies.

Mahyunadi said the four companies accompanying him were among the "victims" of the production cuts in their RKAB approvals. They were Indexim Coalindo, Ganda Alam Makmur, Perkasa Inakakerta, and Indominco Mandiri. Together, they had requested production quotas totaling 61.6 million tons but received approval for only 35.15 million tons. "If production falls by 26 million tons, we stand to lose Rp2.34 trillion (around US$131.5 million) in potential regional revenue," Mahyunadi told Tempo on Wednesday, June 24.

While coal-producing regions such as East Kutai lost revenue, the cuts in coal production also contributed though not directly-to the rolling blackouts across Java and Bali.

In a statement, acting Director-General of Electricity at the Energy and Mineral Resources Ministry Tri Winarno said the outages were caused by disruptions at the 300 megawatt (MW) Cilacap 1 coal-fired power plant (PLTU) and the 1,000-MW Cilacap 4 plant. It later emerged that the 1,760-MW Jawa-1 combined-cycle gas-fired power plant (PLTGU) and the 660-MW Cirebon Power 1 PLTU had also experienced disruptions.

Read the Complete Story in Tempo English Magazine

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