IMA Speaks Out on 2026 Coal and Nickel Production Cuts
Jakarta, CNBC Indonesia – The Indonesian Mining Association (IMA) says the domestic mining industry is currently facing a range of diverse challenges, from production issues to changes in government policy.
Ezra Sibarani, Deputy Chair of the Indonesian Mining Association (IMA), noted that the mining sector has recently faced very challenging circumstances. One issue is production restrictions, particularly for nickel and coal.
‘We see challenges in mining with several problems we face — nickel production restrictions and there are resources with legal issues. The problems are many and complex. But the biggest right now is the RKAB for coal and nickel,’ Ezra said at CNBC Indonesia’s Mining Forum, ‘What is the State of the Indonesian Mining Industry?’, on Friday (6 March 2026).
He acknowledged that several companies were quite surprised by the policy because the criteria for determining production quotas are not clear. Meanwhile, each company has different conditions.
‘For example, at what level will it be complete? If it is cut by 50%, it would certainly be costly; we also have commitments with buyers. We understand the government has special considerations, but we hope the government will be flexible,’ he said.
Earlier, Energy and Mineral Resources Minister (ESDM) Bahlil gave a response to requests from various parties, particularly to review the reduction of nickel and coal quotas in the 2026 RKAB (Work Plans and Budgets).
According to Bahlil, the decision is final. He argued the production cuts are made to maintain supply and demand balance so that commodity prices remain stable in global markets. ‘We have already decided. The team has decided; I have said supply and demand. What happens if we produce a lot and prices fall?’ Bahlil said after the Indonesia Economic Outlook event at the Danantara building, Jakarta, quoted on Wednesday (18 February 2026).
He reminded that the nation’s natural resources must not be sold cheaply. He noted that mine management must be measured and sustainable. ‘Don’t sell our country’s wealth cheaply. The management of mining must be sustainable. Our children and grandchildren must also continue this nation,’ Bahlil said.
(pgr/pgr)