The Ministry of Energy and Mineral Resources (ESDM) has approved coal\nproduction permits under the 2026 Work and Budget Plan (RKAB) totalling\nnearly 400 million tonnes.<\/p>\n
Director General of Mineral and Coal (Dirjen Minerba) at the Ministry\nof ESDM, Tri Winarno, confirmed that the government is working\nintensively to finalise all RKAB applications submitted by industry\nplayers. The coal production target for the 2026 RKAB is approximately\n600 million tonnes.<\/p>\n
\u201c(The approval of coal RKAB) is around 390 (million tonnes) heading\ntowards 400 (million tonnes),\u201d Tri stated when met at the Ministry of\nESDM office in Jakarta, quoted on Wednesday (25\/3\/2026).<\/p>\n
Tri explained that the RKAB approval process is also progressing for\nnickel. He noted that to date, the government has given the green light\nto over 100 million tonnes of nickel production RKAB applications for\nthis year.<\/p>\n
\u201cNikel is probably around a hundred (million tonnes) or something,\u201d\nhe added.<\/p>\n
Regarding complaints about the lengthy RKAB issuance process, he\nmentioned challenges in using the new application system. The transition\nto this new digital application requires adaptation time to ensure that\ndata entered by industry players aligns with the ministry\u2019s verification\nsystem.<\/p>\n
\u201cThe new application sometimes can\u2019t yet align. Both the companies\nand the government are active. If it\u2019s not active, it won\u2019t work,\u201d he\nemphasised.<\/p>\n
Production Cut Plan<\/p>\n
The Ministry of ESDM had previously decided to reduce coal and nickel\nproduction targets for 2026 in the Work and Budget Plan (RKAB). This was\ndone to maintain balance between supply and demand for these commodities\nin the global market, ultimately to boost commodity prices this\nyear.<\/p>\n
However, based on the latest developments from a limited meeting of\nPresident Prabowo Subianto with several ministers, the government has\ndecided to increase coal production in the 2026 RKAB.<\/p>\n
This was conveyed by Coordinating Minister for the Economy, Airlangga\nHartarto, after attending the limited meeting held by President Prabowo\nwith several ministers on Thursday (19\/3\/2026) last week.<\/p>\n
\u201cWe are maintaining the state budget so that the deficit remains\nbelow 3% and in line with the directives from the Full Cabinet Session,\nand it has been discussed with technical ministries, through\nefficiencies from various ministries and agencies. With these\nefficiencies, the 3% deficit can be maintained,\u201d Airlangga stated on\nThursday (19\/3\/2026).<\/p>\n
Coal<\/p>\n
For the coal sector, the government plans to cut production in 2026\nto around 600 million tonnes. This figure represents a decrease of about\n190 million tonnes compared to the 2025 realisation of 790 million\ntonnes.<\/p>\n
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said\nthe production target cut aims to encourage coal prices to rise again\nand preserve coal reserves for the future.<\/p>\n
According to him, Indonesia supplies around 514 million tonnes of\ncoal or 43% of the total global trade volume of 1.3 billion tonnes per\nyear. This situation is the root cause of the falling coal prices.<\/p>\n
\u201cAs a result, supply and demand are not balanced, meaning coal prices\ndrop. Through this happy opportunity, the Ministry of ESDM has met with\nDirjen Minerba, and we will revise the RKAB quota. So, we will reduce\nour production so that prices are good and our mines are for our\ngrandchildren,\u201d Bahlil said, quoted on Monday (19\/1\/2026).<\/p>\n
Nickel<\/p>\n
In addition to coal, the government will also adjust nickel\nproduction to align with domestic downstream industry needs.<\/p>\n
At least, the Ministry of ESDM will cut the nickel production target\nto around 250-260 million tonnes. This is lower than the 2025 RKAB of\n379 million tonnes.<\/p>\n
Director General of Mineral and Coal (Minerba) at the Ministry of\nESDM, Tri Winarno, said the adjustment is based on domestic smelter\ncapacity needs.<\/p>\n
\u201cWe will adjust nickel to the production capacity of smelters.\nPossibly around 250-260 million tonnes,\u201d said Tri Winarno when met at\nthe Ministry of ESDM on Wednesday (14\/1\/2026).<\/p>\n
Tri acknowledged that the nickel production cut policy is one\nstrategy to encourage nickel price increases. It has proven effective,\nas after the plan was announced, nickel prices on the global market\nbriefly reached US$18,000 per tonne.<\/p>\n
He revealed that the RKAB evaluation process is still ongoing, along\nwith the use of the new application. However, overall, the process is\nrunning smoothly, especially since existing RKABs can still be used\nuntil March.<\/p>\n
\u201cBut don\u2019t think this is causing disruptions to RKAB approvals;\nthat\u2019s not right. Everything is fine. We can still use them until\nMarch,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-approves-nearly-400-million-tonnes-of-coal-for-2026-rkab-1774414281", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }