Coal and Nickel Production Cuts: The Impact on Miners

Jakarta, CNBC Indonesia — The Indonesian government, through the Ministry of Energy and Mineral Resources (ESDM), has cut nickel and coal production quotas in the 2026 Work Plan and Budget (RKAB) in order to maintain the balance between supply and demand and stabilise commodity prices.

Commenting on the 2026 mining sector RKAB cuts, Chairman of the Indonesia Mining Institute Irwandi Arif said the measure would inevitably affect mining companies that had already planned their production targets and committed to fulfilling long-term contracts.

Industry players are still questioning the criteria used for the RKAB reductions, as some companies have been left untouched whilst others have had their quotas slashed by as much as 90 per cent. Beyond affecting mining company performance, the policy is expected to have a ripple effect on related sectors, including contractors, workers, and other suppliers in mining regions.