The Chairman of the Indonesian Mining Experts Association (Perhapi),\nSudirman Widhy Hartono, is pushing the government to formulate more\nadaptive policies in facing global dynamics that could pressure the\nnational mining industry. These pressures stem from a combination of\nproduction controls, changes to the Work Plan and Budget (RKAB) scheme,\nand a surge in energy costs.<\/p>\n
The mining industry is currently facing multi-layered pressures.\nRising oil prices due to global turmoil and plans to implement B50 are\ndriving up production costs, amid reductions in mineral and coal\nproduction that are forcing companies to implement efficiencies.<\/p>\n
\u201cMany companies cannot operate at the start of the year due to delays\nin the RKAB approval process,\u201d said Widhy during the Discussion on the\nRole of RKAB and Production Increases in Strategies to Address Global\nChallenges in Jakarta, quoted on Saturday (11\/4\/2026).<\/p>\n
Perhapi has warned from the outset about potential obstacles from the\nreturn to an annual RKAB approval scheme. Field conditions show that the\napproval process is not yet running optimally, even though it is\nsupported by a digital system.<\/p>\n
Delays in approvals until March 2026 have left several companies\nunable to operate fully at the beginning of the year. This situation has\ntriggered production disruptions and impacted companies\u2019 business\nplanning.<\/p>\n
\u201cAlhamdulillah, there is a relaxation allowing the use of 25 percent\nof ongoing activities,\u201d Widhy stated.<\/p>\n
Plans for production controls are prompting operational adjustments\nat several mining companies. Business players are starting to hold back\non expansion and reorganise production activities as a precautionary\nmeasure. This condition is beginning to affect the workforce, with\nseveral companies reducing employees as part of their efficiency\nstrategies.<\/p>\n
Pressure is also coming from the energy side. The implementation of\nB50 is seen as potentially increasing operational costs, especially in\nremote mining areas with logistical and fuel storage challenges.\nExperience with B20 to B40 usage has shown a decline in equipment\nperformance and increased maintenance costs. These risks need to be\nconsidered before the policy is rolled out more widely.<\/p>\n
Pamapersada\u2019s Business Development Director, Ade Candra, views global\ngeopolitical turmoil as also affecting mining contractor operations.\nRising commodity prices provide room for revenue, but cost pressures are\nalso increasing.<\/p>\n
\u201cWe need fuel to run mining equipment. We also need components that\nstill largely depend on foreign supplies,\u201d said Ade.<\/p>\n
Dependence on foreign supplies makes the industry vulnerable to\nsupply chain disruptions. Production adjustments by mining companies\ndirectly impact service contractors. Since the beginning of the year,\nseveral companies have started adjusting their workforce numbers in line\nwith changes in fieldwork volumes.<\/p>\n
Coal prices have recorded an increase of around 25 percent. However,\nat the same time, global fuel prices have surged much higher. In the\nJanuary to March period, fuel cost increases even reached 155 percent.\nThis condition amplifies the pressure on companies\u2019 operational\ncosts.<\/p>\n
\u201cThis situation, combined with production adjustments, will certainly\nhave a significant impact on customers in the end,\u201d said Ade.<\/p>\n
Industry players assess that policy synchronisation is needed to\navoid creating multi-layered pressures on the mining sector. Regulatory\ncertainty and careful calculations are key to maintaining the industry\u2019s\nsustainability amid global dynamics.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/mining-industry-pushes-for-adaptive-policies-to-face-global-dynamics-1775875849", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }