Indonesia's Mining Sector Moves Towards a Moment of Consolidation

Jakarta, CNBC Indonesia - Chairman of the Indonesian Mining Institute, Irwandy Arif, said the mining industry is currently between short-term pressures and global conditions. Among them are sudden domestic policies and the war between Iran and Israel with the United States (US). Irwandy believes that with these pressures, this becomes a momentum for consolidation. If not, Indonesian mining would head toward a crisis. If the current policies are indeed based on structural strengthening and transparency, including balance of production and governance, then this should be prioritised. However, if the opposite or not transparent, then Indonesian mining would face a crisis. ‘We can say we are heading towards a momentum of consolidation, but if the opposite, we transition to a crisis, especially if policies are sudden and not transparent,’ Irwandy said during the CNBC Indonesia Mining Forum, ‘Apa Kabar Industri Tambang RI?’, Friday, 6 March 2026. On the other hand, Irwandy also assessed that the government’s plan to cut coal and nickel production in the Work Plan and Budget (RKAB) for 2026 must be transparent. In essence, the reductions are intended for strategic purposes. In this regard, it is to safeguard coal and nickel reserves for sustainability, protect the national stockpile and control the extraction rate. ‘However, these policies require transparency and the involvement of nickel and coal companies,’ Irwandy said.