Video: Pro and Con RKAB 2026 Policy, Indonesian Parliament Backs the Government

Jakarta, CNBC Indonesia – CNBC Indonesia hosted Mining Forum 2026 under the theme ‘What is the State of Indonesia’s Mining Industry?’ which featured a strategic dialogue bringing together regulators, policymakers, industry leaders, and stakeholders. Ezra Sibarani, Deputy Chairman for Legal and Tax, Indonesia Mining Association (IMA), during Mining Forum 2026 revealed several developments in the domestic mining sector. One issue drawing attention from miners is the reduction in production targets for mineral commodities in the 2026 Work Plan and Budget (RKAB 2026). RKAB 2026 sets coal production target at 600 million tonnes, down from 790 million tonnes in 2025, while nickel production is targeted at 260-270 million tonnes, far below RKAB 2025’s 379 million tonnes. The reduction in coal production has caused a shock among miners because the cut is substantial and the criteria for setting the target are not disclosed. On the other hand, miners have prepared investments to maximise production and have commitments with customers, so RKAB 2026 could disrupt targets and lead to losses. Meanwhile Irwandy Arif, Chairman of the Indonesia Mining Institute, said the mining industry faces several headwinds, including the RI-US and EU trade agreements related to critical minerals, Nickel Passport obligations, price downturn cycles. Additionally, sudden RKAB quota policies and the impact of the US-Iran conflict are concerns. Arif assessed that the minerals sector faces short- to medium-term pressures, so policies are needed to strengthen and improve transparency; otherwise the mining sector could face a transition to a crisis. In line with IMA, Gita Mahyarani, Executive Director of the Indonesian Coal Mining Association (APBI), also said policy uncertainty around RKAB 2026 has persisted for a month. Miners lack certainty on production quotas, and the quota cuts for APBI members reach 40-80% without explanation or reasons for the cut. Meanwhile Sudirman Widhy, Chair of the Indonesian Mining Professionals Association (Perhapi), said the quota reductions in RKAB 2026 disrupt long-term mine planning. This is important as it relates to production and the financial ability of mines, which could affect miners’ workers’ lay-offs. Uncertain production also noted by Ahmad Kharis, Vice Chairman of ASPINDO, which could affect mining service businesses since 85% of coal mining work is undertaken by ASPINDO. If 2026 coal production falls by 25%, then 25% of mining equipment and human resources could be idle. Moreover, these production quota uncertainties would affect banking and multifinance financing, thus disrupting finances. Regarding RKAB 2026, Siti Sumilah Rita Susilawati, Secretary of the Directorate General of Mineral and Coal within the Ministry of Energy and Mineral Resources (ESDM), on behalf of the Director General, Tri Winarno, said RKAB 2026 is not a production cap but a rebalancing/adjustment of production. The policy concerns three aspects: an imbalance between supply and demand that depresses prices, particularly for nickel, maintaining price stability, and preserving Indonesia’s mineral reserves. Meanwhile Herry Permana, Assistant Deputy for Mineral and Coal Development at the Coordinating Ministry for Economic Affairs, on behalf of Deputy for Energy and Mineral Resources, Elen Setiadi, said RKAB 2026 policy relates to energy security and downstream processing in Indonesia. On the other hand, Bambang Patijaya, Chair of Commission XII of the Indonesian DPR, said RKAB 2026 is a new policy generating pro and contra. The quota adjustment is not a production cap for coal and nickel, and is intended to safeguard Indonesia’s mineral sector’s sustainability, thus it should be supported. The RKAB 2026 controversy at the start of 2026, said Ferry Dwi Nugraha, Chair of the Primary Energy Value Chain Committee of the Indonesian Private Power Producers Association (APLSI), has caused disruptions to coal supply to power plants and led to reductions in supply as miners delayed shipments due to production quota uncertainty. For full details, watch the dialogue led by Shafinaz Nachiar with Ezra Sibarani, Deputy Chairman for Legal and Tax of the Indonesia Mining Association (IMA), and Irwandy Arif, Chairman of the Indonesia Mining Institute, with Gita Mahyarani, Executive Director of the Indonesia Coal Mining Association (APBI), and Sudirman Widhy, Chair of the Indonesian Mining Professionals Association (Perhapi), with Ahmad Kharis, Vice Chairman of ASPINDO, and Siti Sumilah Rita Susilawati, Secretary of the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM), and Herry Permana, Assistant Deputy for Mineral and Coal Development at the Coordinating Ministry for Economic Affairs, and Bambang Patijaya, Member of Commission XII DPR, and Ferry Dwi Nugraha of the Indonesian Private Power Producers Association (APLSI), in Mining Forum 2026, CNBC Indonesia (Friday, 6 March 2026).