Coal Production Quotas Cut as Miners Question Selection Criteria

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 supply-demand balance and stabilise commodity prices.

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

Industry players are currently questioning the criteria used for the RKAB reductions, as some companies have been left untouched whilst others have seen their quotas slashed by up to 90 per cent. Beyond affecting the performance of mining companies, the policy is expected to have knock-on effects across related sectors, including contractors, workers, and other suppliers in the regions.