Indonesian Political, Business & Finance News

On Coal and Nickel Production Cuts, DPR: Give the Government a Chance

| Source: CNBC Translated from Indonesian | Regulation

Jakarta, CNBC Indonesia - Chairman of Commission XII of the Indonesian House of Representatives (DPR RI), Bambang Patijaya, revealed that the reduction in coal and nickel production in the 2026 Work Plan and Budget (RKAB) should not be viewed negatively. He said the government must be given an opportunity for the policy to run, and adjustments could be made if the situation warrants.

‘The DPR should not view what the government is doing as negative. So whatever it is, we must give the policy that is in effect a chance to be adjusted,’ Bambang said at the CNBC Indonesia Mining Forum 2026, on Friday (6/3/2026).

He noted that every policy inevitably generates pro and contra. Those in support usually do so because it is beneficial and aligns with the ambitions of business players. Those who oppose typically do not align with the policy.

‘I agree that these adjustments are not restrictions. Confirmation from the Director-General, the existing regulations allow RKAB adjustments in mid-year June-July. We are looking at what underpins the government,’ he said.

He added that the sustainability of finite natural resources must be managed in mining because the stakes are very high. Then, how the adjustments are applied should be reviewed in the process.

In the same event, the Ministry of Energy and Mineral Resources (ESDM) said it is still evaluating the policy of reducing coal and nickel production under the RKAB 2026. The circulating issue that coal production would be cut to around six hundred million tonnes this year has not been finalised.

Secretary of the Directorate General of Minerals and Coal (Sesditjen Minerba), Siti Sumilah Rita Susilawati, stated that it should be clarified that in relation to the RKAB 2026 it is not a production cap but an adjustment.

‘Why then does the government adopt this adjustment? Not suddenly; this has been a year in the making. Mines are state-owned; permits 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 explained.

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