Vale Indonesia Temporarily Halts Operations Pending RKAB Approval

Compliance-Driven Operational Suspension

PT Vale Indonesia Tbk (INCO) has announced the temporary suspension of its mining operations effective early 2026 due to the ongoing delay in obtaining approval for its 2026 Work Plan and Budget (RKAB) from the Ministry of Energy and Mineral Resources (ESDM) ¹

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Source 2

https://finance.detik.com/energi/d-8290226/awal-2026-vale-terpaksa-setop-operasional-tambang-ada-apa

. The company made this disclosure through official notifications to both the Financial Services Authority (OJK) and the Indonesia Stock Exchange (BEI).

Legal and Governance Considerations

Vale's Corporate Secretary, Anggun Kara Nataya, stated that the operational halt is a measure of legal compliance and adherence to good corporate governance practices ²

. Without the approved RKAB, the company is legally prohibited from continuing its mining activities. Industry experts, such as Bisman Bakhtiar from the Energy and Mining Law Study Center (Pushep), have commended Vale's decision, viewing it as a demonstration of commitment to legal compliance and corporate governance ¹

Source 1

https://industri.kontan.co.id/news/rkab-2026-belum-terbit-penghentian-operasi-vale-inco-jadi-bentuk-kepatuhan-hukum

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Operational and Financial Implications

While the temporary suspension is not expected to have a material direct impact on Vale's current financial condition, the company remains committed to maintaining business continuity, workplace safety, and operational stability ²

. Vale has expressed hope that the RKAB approval will be granted soon, allowing the resumption of normal operations.

Regulatory Context and Industry Impact

The RKAB approval process is a critical regulatory requirement for mining operations in Indonesia. The delay in approval has forced Vale to take this precautionary measure, highlighting the importance of regulatory compliance in the mining sector. The situation underscores the need for better coordination between corporate planning and government regulatory processes.