Promoting Electrification in the Mining Sector, the Industry Needs This!

Jakarta, CNBC Indonesia - Vice Chairman of the Indonesian Mining Services Association, Ahmad Kharis, openly discussed the high operational costs in the mining sector. He revealed that in running mining businesses, one of the largest costs is contractor work. This can include overburden removal and material transportation, which often encompass fuel (BBM), heavy equipment maintenance, and labour components. “We need to know that the biggest part for us is 85% done by contractors. For nickel, we do the most work, so the biggest investment is with us. For mining services, as long as there’s profit, it’s okay,” explained Ahmad at the EV Transition in Mining Industry Outlook 2026 event on Wednesday (29/4/2026). Seeing this, he hopes industry players can receive incentives to support business continuity. Even industry players are ready to promote the use of electric vehicles as a commitment to sustainability. “The government’s policy is clear on how to achieve NZE. But the derivative policies, we ask the government for help, we don’t know about import tax. How can we buy (EV) if there’s no attractive incentive,” he clarified. As is known, the mining industry is currently facing various challenges, from concession certainty to RKAB. Therefore, according to Ahmad, industry players need strong support from various parties. Even for electrification, the mining industry greatly needs support from PLN. This is very important, considering the use of EV in the mining sector is seen as very beneficial in reducing operational costs. “Then next, PLN’s electricity source, how is it if we talk about EBT, how much support for EBT. Then is there heavy industry incentive from the government, and how is PLN’s infra support from transmission and capacity sides,” he concluded.