Indonesian Political, Business & Finance News

Video: Miner Shares Frustrations Over RKAB 2026 Quota Cuts, Causing Losses

| Source: CNBC Translated from Indonesian | Regulation

CNBC Indonesia hosted Mining Forum 2026 under the theme ‘How is Indonesia’s mining industry faring?’ which featured strategic dialogues bringing together regulators, policymakers, industry leaders and other stakeholders.

Ezra Sibarani, Deputy Chairman for Legal and Tax at the Indonesia Mining Association (IMA), in Mining Forum 2026, outlined several developments in the domestic mining industry. One issue highlighted by miners is the reduction in production targets for mineral and coal commodities in the Work Plan and Budget (RKAB) 2026.

RKAB 2026 sets coal production at a target of 600 million tonnes, down from the 2025 target of 790 million tonnes, while nickel production is targeted at 260–270 million tonnes, well below the RKAB 2025 level of 379 million tonnes.

The coal production cut has shocked miners due to the sizeable decrease, and the criteria for setting it remains undisclosed. Moreover, miners have already prepared investments to maximise production and to fulfil customer commitments, so RKAB 2026 will disrupt targets and cause losses.

Meanwhile, Irwandy Arif, Chairman of the Indonesia Mining Institute, stated that the mining sector faces several headwinds, including the RI–US and EU trade agreements relating to critical minerals, the Nickel Passport Obligation, price decline cycles, and the abrupt RKAB quota policy along with the impact of the US–Iran conflict.

Irwandy Arif assessed that the mining sector faces short- and medium-term pressures and called for policies to strengthen the sector structurally and increase transparency; otherwise the mining sector risks entering a transition towards a crisis.

Echoing the IMA, Gita Mahyarani, Executive Director of the Indonesian Coal Mining Association (APBI), also noted that the RKAB 2026 policy remains unclear after a month, with miners lacking certainty about production quotas and APBI members’ quota cuts ranging from 40–80% without explanation or justification.

Sudirman Widhy, Chairman of the Indonesian Mining Experts Association (Perhapi), said that the production quota cuts in the RKAB 2026 disrupt long-term mine planning, stressing that this matters for production and a mine’s financial viability, potentially leading to layoffs among mining workers.

The uncertainty over mine production would also affect mining service businesses, noted Ahmad Kharis, Deputy Chairman I of ASPINDO, since 85% of coal mine jobs are performed by ASPINDO members. If coal production in 2026 falls by 25%, then 25% of mining equipment and personnel would be unable to operate. Additionally, this production quota uncertainty would affect bank and multifinance financing, disrupting finances.

Regarding RKAB 2026, Siti Sumilah Rita Susilawati, Secretary of the Directorate General of Mineral and Coal (Ditjen Minerba), representing the DG Minerba ESDM, Tri Winarno, said RKAB 2026 is not a production constraint but a production realignment/adjustment. The policy relates to three matters: an imbalance of supply and demand that suppresses prices, particularly nickel; maintaining price stability; and safeguarding Indonesia’s mineral reserves.

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

On the other side, Bambang Patijaya, Chairman of Commission XII of the Indonesian House of Representatives, stated that RKAB 2026 is a new policy with pros and cons. The quota adjustment is not a restriction on coal and nickel production but aimed at safeguarding the long-term sustainability of Indonesia’s mining sector and should be supported.

The RKAB 2026 controversy at the start of 2026, described by Ferry Dwi Nugraha, Chairman of the Primary Energy Value Chain Committee of the Association of Private Indonesian Electricity Producers (APLSI), has disrupted coal supplies to power plants as miners delay coal deliveries due to quota uncertainties.

For the full dialogue, watch Shafinaz Nachiar and Ezra Sibarani; Irwandy Arif and Gita Mahyarani; Sudirman Widhy and Ahmad Kharis; Siti Sumilah Rita Susilawati with Herry Permana and Bambang Patijaya; and Ferry Dwi Nugraha in Mining Forum 2026, CNBC Indonesia, Friday, 6 March 2026.

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