Mining Industry Amid Short-Term Pressures and Global Conflict

Jakarta, CNBC Indonesia – Irwandy Arif, chairman of the Indonesia Mining Institute, said the mining industry is currently facing considerable pressures from both global and domestic fronts. Globally, Indonesia’s agreements with the United States and the European Union on critical minerals, and nickel supply obligations that must meet certain environmental standards to enter the European market.

There is also a downward price cycle for several commodities. Domestically, sudden and abrupt policies are pushing up operating costs. With the prospect of conflict involving Iran, the United States and Israel, prices could rise again, Irwandy said at the CNBC Indonesia Mining Forum 2026 on Friday (6 March 2026).

These factors place short-term pressure on the mining industry from global conditions. If current policies are anchored in structural strengthening and transparency, Indonesia could enter a momentum of consolidation. However, if the opposite occurs, the mining industry could head toward a crisis.

Meanwhile, he described the decision to trim RKAB as strategic to safeguard sustainable reserves and control the rate of extraction. Nevertheless, Irwandy stressed that these policies require transparency and state presence, for nickel and coal companies alike without discrimination.

But coal is different from nickel; the coal issue relates more to price cycle stability and state revenue. So policies could be long-term if the above conditions are met, not sudden, fair and transparent, he said.