Bahlil Prioritises RKAB Relaxation for High-Royalty Companies

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia is prioritising the relaxation of the Work Plan and Budget (RKAB) for companies that pay high royalties. “I must prioritise those that pay large royalties. Because the policies we make must have the greatest possible benefit for the interests of the state and the people,” Bahlil said when met at the ESDM Ministry office in Jakarta on Monday. Bahlil confirmed there are changes to production quotas through the RKAB revision. However, he declined to detail the production quota changes granted. The refusal to disclose the production volume set after the RKAB revision aims to prevent commodity price fluctuations in the international market. “Because if I disclose (the volume), prices could fluctuate again. That could affect world prices,” Bahlil said. He stressed that the prices of mining commodities in Indonesia, including nickel, coal, and others, must be sold at good prices. Moreover, these commodities are non-renewable. “Our goods must not be cheap. That is what is meant by independence in managing our natural resources to fulfil the mandate of Article 33 of the 1945 Constitution,” he said. Previously, the Director General of Mineral and Coal at the ESDM Ministry, Tri Winarno, stated that there would be no additional production quota for nickel, except to meet the needs of smelters still lacking nickel supply. Meanwhile, additional coal production quotas are granted to meet the operational needs of PT PLN (Persero) power plants. The government does not want to restrict coal production in a way that causes supply problems for power plants, but it is also striving to prevent an oversupply of coal in the international market.