Indonesian Political, Business & Finance News

Video: Coordinating Ministry for Economic Affairs: RKAB 2026 Policy to Safeguard Energy Security

| Source: CNBC Translated from Indonesian | Regulation
Video: Coordinating Ministry for Economic Affairs: RKAB 2026 Policy to Safeguard Energy Security
Image: CNBC

Jakarta, CNBC Indonesia - CNBC Indonesia, presented Mining Forum 2026 with the theme “What is the State of Indonesia’s Mining Industry?” featuring strategic dialogue bringing together regulators, policymakers, industry leaders, and stakeholders. Ezra Sibarani, Vice-Chairman for Legal and Tax at the Indonesia Mining Association (IMA), disclosed a series of developments in the domestic mining industry. A focal point for mining operators is the trimming of commodity production targets in the Work Plan and Budget (RKAB) for 2026.

RKAB 2026 sets a coal production target of 600 million tons, down from the 2025 target of 790 million tons, while nickel production is targeted at 260-270 million tons, well below the 2025 RKAB target of 379 million tons. The coal production cut has been a shock to miners because the reduction is substantial and the criteria for setting the cap are not disclosed. Meanwhile, miners are already preparing investments to maximise production and to meet customer commitments, so RKAB 2026 is expected to disrupt targets and could lead to losses.

Meanwhile, Irwandy Arif, Chairman of the Indonesia Mining Institute, said the mining sector faces various sentiments, including the RI-US and EU trade agreements related to critical minerals, Nickel Passport Obligations, and price downturn cycles. In addition, sudden RKAB quota policies and the impact of the US-Iran conflict are cited as concerns.

Irwandy Arif assesses that the mining sector faces short- and medium-term pressures, necessitating policies to strengthen structure and transparency to avoid the sector entering a crisis during a transition.

In line with the IMA, Gita Mahyarani, Executive Director of the Indonesian Coal Mining Association (APBI), also notes that policy uncertainty surrounding RKAB 2026 has persisted for a month, with miners lacking certainty about production quotas and APBI members facing quota cuts of 40-80% without explanation or justification.

Meanwhile, Sudirman Widhy, Chair of the Indonesian Mining Experts Association (Perhapi), says the quota reductions in RKAB 2026 seriously disrupt long-term mine planning. This matters because it affects production capability and the financial capacity of mines, potentially leading to layoffs. The production uncertainty is also expected to affect mining services businesses, as 85% of coal mining work is performed by ASPINDO. If coal production falls by 25% in 2026, corresponding reductions in equipment and human resources could occur, and the uncertainty will affect bank and multifinance financing, thereby impacting the sector’s finances.

Regarding RKAB 2026, Siti Sumilah Rita Susilawati, Secretary of the Directorate General of Minerba of the Ministry of Energy and Mineral Resources (ESDM), representing the Director-General Tri Winarno, stated that RKAB 2026 is not a production cap but a realignment/adjustment of production, with policy linked to three aspects: an imbalance between supply and demand (which suppresses nickel prices), price stabilisation, and maintaining national mineral and coal reserves.

As Assistant Deputy for Mineral and Coal Development at the Coordinating Ministry for Economic Affairs, Herry Permana, representing Deputy for Energy and Mineral Resources Coordination Elen Setiadi, said RKAB 2026 policy relates to energy security and downstream development in Indonesia.

From the perspective of the Chair of Commission XII of the Indonesian DPR, Bambang Patijaya, RKAB 2026 is a new policy that invites both supporters and critics. The production quota adjustments are not intended as production restrictions for coal and nickel but to safeguard the sustainability of Indonesia’s mining sector and should be supported.

In early 2026, the Head of the Primary Energy Value Chain Committee of the Indonesia Private Power Producers Association (APLSI), Ferry Dwi Nugraha, described the RKAB 2026 debate as disruptive to coal supply to power plants, with reduced supply as miners delay coal shipments due to production quota uncertainty.

For the full dialogue, Shafinaz Nachiar with Ezra Sibarani (IMA) and Irwandy Arif (Indonesia Mining Institute) with Gita Mahyarani (APBI) and Sudirman Widhy (Perhapi), along with Ahmad Kharis (ASPINDO), Siti Sumilah Rita Susilawati (Ditjen Minerba, ESDM), Herry Permana (Kemenko), Bambang Patijaya (DPR), and Ferry Dwi Nugraha (APLSI), on Mining Forum 2026, CNBC Indonesia (Friday, 06/03/2026).

View JSON | Print