The Indonesian Ministry of Energy and Mineral Resources (ESDM) has simplified the Work Plan and Budget (RKAB) regulatory requirements through Ministerial Regulation No. 17 of 2025, reducing the number of items in the application matrix from 30 to 10. The move aims to accelerate project planning, exploration activities, and the RKAB approval process for all Mining Business Permit (IUP) holders.
Cecep Mochammad Yasin, Head of the Mineral and Rock Resources Directorate at the National Development Planning Agency, explained that the simplification is crucial for improving the efficiency of administrative procedures without reducing governmental oversight.
He noted that the new matrix is designed to expedite RKAB approvals so they can take effect before 2026. By streamlining the matrix structure, the administrative burden on companies is reduced while maintaining compliance. Certain aspects previously required in the RKAB preparation--such as environmental management, post-mining guarantee fund usage, and certain technical records--will now be submitted as part of regular reporting. This does not remove corporate responsibilities but changes their form to enhance reporting standardization.
The RKAB review process is now divided into three evaluation stages. In the first stage, companies have 30 calendar days to correct and refine their documents based on initial feedback. If deficiencies remain, the Director of Mineral Resources may grant second and third opportunities within set time limits. If the RKAB is still not approved after all stages, standard procedures under applicable regulations will follow.
Cecep Mochammad Yasin added that approximately 100 to 150 company RKAB documents are currently undergoing compliance procedures. The government has also implemented a preliminary review system via its public service portal, which is being used temporarily until the new assessment process is fully operational. As part of this preliminary review, ESDM has received feasibility study reports from several companies. The review of these studies serves as an initial step before RKAB submission and an important indicator of a company's capability to meet government requirements.
By simplifying documentation and restructuring the evaluation process, the government aims to make resource exploration permit applications faster and more orderly. This effort is expected to help companies fulfill their obligations on time while ensuring that mineral mining management remains aligned with current regulations.
Written by Cora Ji, jiruyan@mysteel.com
