Indonesian Miners Halt Spot Coal Exports Over Proposal Cut Output

In early February 2026, the global coal market faced a significant supply disruption as Indonesian miners began halting spot coal exports. This move came in direct response to a government proposal aimed at capping national coal output to meet stricter environmental targets and prioritize domestic power needs. Indonesia, being the world’s largest exporter of thermal coal, caused immediate ripples in international markets, particularly among major Asian importers who rely heavily on Indonesian supply for their energy grids. Miners have expressed concern that the proposed production cuts would not only breach existing supply contracts but also undermine the long-term investment climate in the country’s mining sector.

The halt on spot sales has led to a sharp tightening of global supply, pushing coal prices higher across several regional benchmarks. While long-term contract deliveries are currently being maintained, the sudden absence of spot availability has left many utility companies scrambling for alternative sources, often at a significantly higher cost. The Indonesian government maintains that the production cap is a necessary step in its transition toward sustainable energy and carbon neutrality; however, the mining industry warns that a prolonged standoff could lead to operational shut-ins and a loss of market share to rival exporters. As of now, negotiations between industry representatives and government officials remain at an impasse, leaving the market in a state of heightened uncertainty.