Video: ESDM Explains Three Reasons for Cutting Coal-Nickel Production\nQuotas<\/p>\n
Jakarta \u2014 CNBC Indonesia, in Mining Forum 2026 with the theme \u2018What\nis the State of Indonesia\u2019s Mining Industry?\u2019, hosted a strategic\ndialogue bringing together regulators, policymakers, industry leaders\nand stakeholders.<\/p>\n
Deputy Chairman for Law and Tax at the Indonesia Mining Association\n(IMA), Ezra Sibarani, told Mining Forum 2026 of several developments in\nthe country\u2019s mining sector. One issue attracting the attention of\nmining operators is the trimming of the production targets for mining\ncommodities in the RKAB 2026.<\/p>\n
RKAB 2026 sets coal production at a target of 600 million tonnes,\ndown from 790 million tonnes in 2025, while nickel production is\ntargeted at 260-270 million tonnes, far below the RKAB 2025 target of\n379 million tonnes.<\/p>\n
The cut in coal production has caused a shock to miners, as the\ndecrease is sizeable and the criteria for setting it are not disclosed.\nMiners, meanwhile, have already prepared investments to maximise\nproduction and in relation to commitments with customers, meaning RKAB\n2026 will disrupt targets and cause losses.<\/p>\n
Meanwhile, Irwandy Arif, Chairman of the Indonesia Mining Institute,\nsaid the mining sector faces a number of headwinds, including the\nU.S.-Indonesia trade agreement and the European Union\u2019s stance on\ncritical minerals, the Nickel Passport Obligation, price downturn\ncycles, and the abrupt RKAB quota policy with spillover effects from the\nUS-Iran conflict.<\/p>\n
Irwandy Arif assessed that the minerals and mining sector faces\nshort- and medium-term pressures, hence policies are needed to bolster\nstructural strength and transparency; otherwise the mining sector could\nface a transition towards a crisis.<\/p>\n
Echoing IMA, the Executive Director of the Indonesia Coal Mining\nAssociation (APBI), Gita Mahyarani, said the lack of clarity around the\nRKAB 2026 policy has persisted for a month, with miners not receiving\nclarity on production quotas and quota cuts for APBI members amounting\nto 40-80% without explanations or reasons for the reductions.<\/p>\n
Meanwhile, the Chair of the Indonesian Mining Experts Association\n(Perhapi), Sudirman Widhy, said that the reduction in RKAB 2026\nproduction quotas disrupts long-term mine planning. This matters because\nit affects production and the financial capacity of mines and could lead\nto mineworkers being laid off.<\/p>\n
Uncertainty about mine production was also cited by Ahmad Kharis,\nVice Chairman of I ASPINDO, who warned it could affect mining services\nbusinesses since 85% of mining work is undertaken by ASPINDO. If coal\nproduction in 2026 falls by 25%, then 25% of mining equipment and\npersonnel may be idle. Moreover, the uncertainty over production quotas\ncould affect bank and multifinance financing, thereby disrupting\nfinances.<\/p>\n
Regarding RKAB 2026, the Secretary of the Directorate General of\nMineral and Coal at the Ministry of Energy and Mineral Resources (ESDM),\nSiti Sumilah Rita Susilawati, representing the Dirjen Minerba Tri\nWinarno, said that RKAB 2026 is not a production cap but an\narrangement\/adjustment of production. The policy relates to three\nmatters: the imbalance between supply and demand that is depressing\nprices, particularly nickel, maintaining price stability, and\nsafeguarding the country\u2019s mineral reserves.<\/p>\n
Meanwhile, Herry Permana, Assistant Deputy for Mineral and Coal\nDevelopment at the Coordinating Ministry for Economic Affairs,\nrepresenting Deputy for Energy and Mineral Resources Coordination Elen\nSetiadi, said that the RKAB 2026 policy relates to energy security and\nIndonesia\u2019s downstream development.<\/p>\n
On the other hand, Bambang Patijaya, Chair of Commission XII of the\nDPR, said that the RKAB 2026 policy is a new policy with pros and cons.\nThe production quota adjustment is not a production cap for coal and\nnickel but is intended to safeguard the sustainability of Indonesia\u2019s\nmineral resources and mining sector and should be supported.<\/p>\n
The RKAB 2026 controversy at the start of 2026, according to Ferry\nDwi Nugraha, Chair of the Primary Energy Value Chain Committee of the\nIndonesian Private Power Producers Association (APLSI), has disrupted\ncoal supply to power plants with reduced supply as miners delay\nshipments due to the production quota uncertainty.<\/p>\n
For full details, see the dialogue between Shafinaz Nachiar Afinaz\nNachiar with the IMA\u2019s Deputy Chairman for Law and Tax Ezra Sibarani and\nthe Chairman of the Indonesia Mining Institute, Irwandy Arif, with the\nExecutive Director of the Indonesian Coal Mining Association (APBI),\nGita Mahyarani, as well as the Chair of Perhapi Sudirman Widhy with the\nVice Chairman of I ASPINDO, Ahmad Kharis, and the Secretary of the\nDirectorate General of Mineral and Coal, ESDM, Siti Sumilah Rita\nSusilawati, with the Assistant Deputy for Mineral and Coal Development\nat the Coordinating Ministry for Economic Affairs, Herry Permana, and\nthe Chair of Commission XII, Bambang Patijaya, and the Vice Chairman of\nthe Primary Energy Value Chain Committee of the Indonesian Private Power\nProducers Association (APLSI), Ferry Dwi Nugraha, in Mining Forum 2026,\nCNBC Indonesia (Friday, 6 March 2026).<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/video-esdm-explains-three-reasons-for-cutting-coal-nickel-production-quotas-1772801956", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }