ESDM Allows Mining Companies to Operate at Limited Capacity While RKAB Approvals Pending

Temporary Operating Permit Until March 2026

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has issued a policy allowing mining companies to continue operations at 25% capacity until March 31, 2026, while their Work Plan and Budget (RKAB) applications for 2026 are being processed ¹

. This decision was made to provide continuity and certainty for mining activities that are awaiting RKAB approval.

Companies Affected by the Policy

The policy applies to mining companies that have submitted their RKAB applications for 2026 but are still pending approval. However, it does not apply to companies like PT Vale Indonesia Tbk (INCO), which is currently undergoing a license extension process and therefore does not have an RKAB for 2026 ¹

²

Source 2

https://finance.detik.com/energi/d-8294315/vale-setop-sementara-opersional-tambang-esdm-buka-suara

.

Rationale Behind the Decision

The Director General of Mineral and Coal at ESDM, Tri Winarno, explained that the delay in RKAB approvals is due to minor adjustments required in the submitted plans rather than major issues. He assured that the approvals are expected to be completed soon ²

.

Industry Response and Implications

The Indonesian Mining Association (Perhapi) has noted that the change from a three-year to an annual RKAB approval process might cause delays. Perhapi Chairman Sudirman Widhy expressed concerns that this change could potentially hinder the approval process, although the ESDM is working to ensure that the system is completed by the first quarter of 2026 ³

.