Indonesian Mining Sector Faces Operational Challenges Amid RKAB 2026 Delays

Regulatory Uncertainty

The Indonesian mining industry is currently grappling with uncertainty surrounding the approval of the 2026 Work Plan and Budget (RKAB). The Indonesian Mining Association (API-IMA) has expressed concerns about the potential impact of delayed approvals on mining operations ¹

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Differing Company Responses

While some mining companies are allowed to continue their operations if they meet specific regulatory requirements, others have taken a more cautious approach. PT Vale Indonesia (INCO), for instance, has temporarily halted its mining operations pending the approval of its RKAB ³

. In contrast, other companies are proceeding with production, provided they comply with the conditions outlined in a recent circular from the Directorate General of Mineral and Coal ²

Source 2

https://industri.kontan.co.id/news/imef-produksi-tambang-bisa-jalan-meski-rkab-2026-belum-disetujui-ini-syaratnya-1

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Industry Perspectives

The Indonesian Mining and Energy Forum (IMEF) has clarified that mining companies can continue production even without RKAB approval, as long as they fulfill certain prerequisites. This stance is supported by the existence of a specific circular that outlines these requirements ²

. The Indonesian Nickel Industry Forum (FINI) has expressed support for INCO's decision to halt operations temporarily, viewing it as a compliance measure with existing regulations ⁴

Source 4

https://industri.kontan.co.id/news/asosiasi-nikel-menilai-penghentian-sementara-operasi-tambang-vale-tak-ganggu-kinerja

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Regulatory Framework

The RKAB approval process, now conducted annually instead of triennially, is seen as a regulatory transition phase that requires careful navigation by both the government and industry players. The process is entirely managed through a systematic evaluation at the Directorate General of Mineral and Coal ³

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