ESDM Still Evaluating Policy to Cut Coal and Nickel Production

Jakarta – The Ministry of Energy and Mineral Resources (ESDM) is still evaluating the policy to trim coal and nickel production within the 2026 Work Plan and Budget (RKAB) 2026. There have been circulating reports that coal production would be cut to around 600 million tonnes this year, but the issue is not final.

Sesditjen Minerba, Siti Sumilah Rita Susilawati, said that it should be clarified that the RKAB 2026 is not a production cap but an adjustment. ‘Why then does the government adopt this adjustment, not suddenly? This has been in place for a year. The mines are state-owned, licences are proposed, the state has the right to evaluate with considerations and it is not a problem if details are not disclosed to the public,’ Rita said at the Mining Forum 2026 CNBC Indonesia, “Apa Kabar Industri Tambang RI?”, Friday (6/3/2026).

According to Rita, the government is aware of concerns among mining operators, including worries about potential layoffs. However, the policy is taken with a range of risks, or the government ensures business continuity.

‘Not unheard, this has been kept for now. This is still an adjustment; evaluation later and RKAB revisions can be submitted in June–July. And adjustments can be made with justification.’ Rita said.

‘Again, this policy carries all risks; the government is aware there will be evaluation. Business continuity and layoffs are being considered,’ Rita said.

(pgr/pgr)