Business Prospects
Entering 2026, the national coal industry is expected to face a phase of adjustment as the government plans to control production levels to maintain market balance and global price stability. The government, through the Directorate General of Minerals and Coal (Ditjen Minerba), has stated that the national coal production target could potentially be set below 700 million tons, lower than that of previous years. This policy is taken to respond to fluctuations in international demand and mitigate the risk of oversupply, which could impact coal prices
on the global market.
From market perspective, demand from key destinations such as China and India is expected to slow, in line with increased domestic production and energy efficiency policies in each country. However, alternative market such as the Philippines is expected to continue to offer more stable export absorption opportunities. Under these conditions, coal prices are projected to move relatively stable, following global commodity trends, although will remain influenced by the dynamics of international demand and energy policies. Considering regulatory amendments, including the Work Plan and Budget (RKAB) approval process and the Non-Tax State Revenue target for the mineral and coal sector, the Company views the 2026 business outlook as challenging but manageable.
Company’s 2026 Projection
The Company targets coal production volume in 2026 to be in the range of 54-58 million tons, with sales volume of 54-58 million tons. In terms of capital structure, the Company targets a capital structure that remains healthy and optimal, with a maintained capital ratio that aligns with the Company’s funding strategy and investment needs.