Indonesian Political, Business & Finance News

Mid-April Already, Approval of 2026 Mining RKAB Complete at 90%

| Source: CNBC Translated from Indonesian | Mining
Mid-April Already, Approval of 2026 Mining RKAB Complete at 90%
Image: CNBC

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) has revealed that by mid-April 2026, progress on approving the 2026 Work Plans and Budgets (RKAB) for mineral and coal commodities has reached around 90%.

The Director General of Minerals and Coal (Dirjen Minerba) at the Ministry of ESDM, Tri Winarno, stated that the approval process is still ongoing.

“Almost done. It’s nearly 90%,” Tri revealed at the DPR RI Building in Jakarta on Wednesday (15/4/2026).

Tri explained that companies yet to receive RKAB approval are hindered by failing to meet the government’s required documentation.

“It’s missing this, then hasn’t completed it, and we want to approve? No way,” he said.

Government Cuts Production

The government has decided to reduce coal and nickel production targets for this year. This is to maintain balance between supply and demand for these commodities in the global market, ultimately boosting prices.

Coal

For the coal sector, the government plans to cut production in 2026 to approximately 600 million tonnes. This figure represents a decrease of about 190 million tonnes compared to the 2025 realisation of 790 million tonnes.

Energy and Mineral Resources Minister Bahlil Lahadalia said the production target cut aims to push coal prices back up and preserve coal reserves for the future.

According to him, Indonesia supplies around 514 million tonnes of coal, or 43% of the total global trade volume of 1.3 billion tonnes per year. This situation is the root cause of falling coal prices.

“As a result, supply and demand are imbalanced, meaning coal prices drop. Through this happy opportunity, the Ministry of ESDM has met with Dirjen Minerba, and we will revise the RKAB quotas. So, we will lower our production to ensure good prices and save our mines for our grandchildren,” Bahlil stated, quoted on Monday (19/1/2026).

Nickel

In addition to coal, the government will also adjust nickel production to align with the needs of the domestic downstream industry.

At least, the Ministry of ESDM will cut the nickel production target to around 250-260 million tonnes in 2026. This is lower than the 2025 RKAB of 379 million tonnes.

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