Indonesian Mining Sector Receives Temporary Relief for 2026 Operations

Regulatory Framework for Mining Operations

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has issued Circular Number 2.E/HK.03/DJB/2025, allowing mining companies to continue operations at 25% capacity despite pending approval for their 2026 Work Plan and Budget (RKAB) ¹

. This regulatory flexibility, effective until March 31, 2026, addresses the challenges arising from the transition to annual RKAB approvals mandated by Ministerial Regulation Number 17 of 2025 ³

Source 3

https://industri.kontan.co.id/news/esdm-jelaskan-alasan-relaksasi-rkab-2026-produksi-tambang-dibatasi-25-hingga-maret

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Eligibility Criteria for Mining Companies

To qualify for this temporary measure, mining companies must meet specific conditions: they must have previously obtained approval for their 2026 RKAB, submitted adjustment requests through the RKAB information system, and have existing Reclamation Guarantee placements for production operations ²

. The circular applies to various mining permit holders including IUP, IUPK, KK, and PKP2B ⁴

Source 4

https://industri.kontan.co.id/news/ini-detail-aturan-rkab-2026-kementerian-esdm-izinkan-operasi-tambang-hingga-31-maret

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Industry Impact and Implementation

The 25% production limit is based on the approved 2026 RKAB before the new ministerial regulation came into effect. Director General of Mineral and Coal, Tri Winarno, explained that the 25% limit corresponds to the three-month grace period (January to March) relative to the full year ³

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Company Responses

PT Vale Indonesia Tbk (INCO), a major nickel miner, has temporarily halted operations due to the pending RKAB approval, demonstrating the practical implications of the regulatory transition ⁵

. However, the company has clarified that its 2026 RKAB is in the final stages of approval at the ESDM ⁶

Source 6

https://industri.kontan.co.id/news/vale-inco-persetujuan-rkab-2026-sudah-capai-tahap-akhir

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Challenges and Future Outlook

The delayed RKAB approvals have been attributed partly to implementation challenges with the new MinerbaOne digital platform, which integrates various reporting systems ⁷

. Industry experts suggest that the tight implementation timeline contributed to companies' difficulties in adapting to the new system.