ICN News, Jakarta – PT Bayan Resources Tbk (BYAN), one of Indonesia’s largest coal producers, is facing a significant operational challenge after the company and three of its subsidiaries declared force majeure in relation to their coal supply obligations to customers. The situation is linked to the pending approval of amendments to the companies’ 2026 Work Plan and Budget (RKAB) for three Bayan subsidiaries: PT Tiwa Abadi (TA), PT Tanur Jaya (TJ), and PT Fajar Sakti Prima (FSP).
According to the company’s disclosure, the force majeure notification was delivered to customers on 11 September 2026, while the material information was subsequently reported to the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) on 14 September 2026.
The issue is significant because RKAB approval is fundamental to the lawful implementation of mining activities in Indonesia. Bayan stated that the applications for amendments to the 2026 RKAB had been submitted in accordance with applicable regulations, but approval for the three subsidiaries had not yet been issued.
As a result, the situation has affected the company’s ability to fulfil certain coal supply obligations under its Coal Supply Agreements with customers.
MORE THAN AN ADMINISTRATIVE MATTER
For Indonesia’s mining industry, RKAB is far more than a routine administrative document. It is directly connected to the company’s ability to carry out its approved mining and production activities. Therefore, the delay in obtaining the amended 2026 RKAB approvals for the three Bayan subsidiaries has operational implications, particularly regarding production and the fulfilment of coal supply commitments.
Bayan has stated that the situation could have a material impact on the continuity of the company’s business. By declaring force majeure, the company seeks to manage the contractual risks and consequences arising from circumstances affecting its ability to fulfil certain customer obligations.
Nevertheless, the development should be viewed in the proper context. The force majeure declaration relates to the affected supply obligations and the circumstances involving the company and the three subsidiaries identified in the disclosure. It should not automatically be interpreted as meaning that all Bayan Resources mining operations have been suspended.
A LARGE SCALE BUSINESS FOUNDATION
The development comes at a time when Bayan Resources continues to operate on a very substantial scale. In 2025, Bayan produced approximately 68 million tonnes of coal, compared with around 56.9 million tonnes in 2024. During the first half of 2026, the company recorded consolidated revenue of approximately US$1.74 billion, with coal sales contributing approximately US$1.73 billion.
These figures underline the importance of coal production and sales to Bayan’s overall business performance. For a company operating at such a scale, certainty over production capacity and coal deliveries is critical not only for the company itself, but also for customers, contractors, logistics providers and other participants throughout the mining supply chain.
THE MARKET IS WATCHING
The force majeure announcement has also attracted attention from the capital market, Bayan’s shares came under pressure following the announcement, reflecting investor concerns regarding the potential operational and financial implications of the situation.
At the same time, the government, through the Ministry of Energy and Mineral Resources (ESDM), is evaluating Bayan’s submission concerning the amended 2026 RKAB. This means the situation is still developing, and the next decision from the regulator will be closely watched by the market and the mining industry.
For Bayan, the most important issue is obtaining clarity on the amended RKAB approvals for the three subsidiaries and determining how quickly the affected operations can return to their intended production and supply plans.
A KEY TEST FOR OPERATIONAL CERTAINTY
Bayan Resources’ force majeure declaration has become one of the notable developments in Indonesia’s coal mining sector in September 2026. More importantly, the case highlights how closely mining operations are linked to regulatory certainty.
When an amended RKAB has not yet been approved, the consequences can extend beyond production. They may affect coal deliveries, contractual commitments, customer relationships, revenue recognition and investor sentiment.
However, Bayan continues to have a substantial business foundation, supported by annual coal production measured in tens of millions of tonnes and revenues reaching billions of US dollars. The key question now is therefore not simply the declaration of force majeure, but when regulatory certainty regarding the 2026 RKAB amendments for the three subsidiaries will be achieved.
If the approvals are issued promptly and the affected operations are able to proceed according to plan, pressure on production and contractual commitments could gradually ease. On the other hand, if the approval process takes longer, the market is likely to pay increasing attention to its potential impact on Bayan’s production, sales, customer commitments and overall financial performance in 2026.
For one of Indonesia’s major coal producers, the 2026 RKAB has therefore become more than a planning document it is now a key factor in determining operational certainty and the company’s business trajectory for the remainder of the year.
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