Recently, the news that PT Vale Indonesia Tbk announced the cessation of nickel mining has been widely spread. This decision was made because the company's proposed 2026 Work Plan and Budget (RKAB) has not yet been approved.
According to the latest developments, the government anticipated such situations and has issued a policy document in the form of a circular through the Directorate General of Minerals and Coal.
On December 31, 2025, the Directorate General of Minerals and Coal of the Ministry of Energy and Mineral Resources issued Circular Letter No. 2.E/HK.03/DJB/2025 regarding the implementation of the 2026 Work Plan and Budget.
The policy emphasizes several matters concerning the 2026 RKAB for entities holding IUP, IUPK, IUPK as continuation of contracts/agreements, KK, and PKP2B during the production and operation phase.
First, in accordance with Article 35(c) and (d) of Minister of Energy and Mineral Resources Regulation No. 17 of 2025 (concerning procedures for the preparation, submission, and approval of Work Plans and Budgets and the reporting on the implementation of mineral and coal mining business activities), specifically:
c. RKAB for 2026 and 2027 approved by the Minister or Governor according to their authority before the enactment of this Ministerial Regulation must be adjusted in accordance with this Ministerial Regulation and submitted through the information system;
d. If a request for adjustment to the 2026 RKAB (as referred to in point c) has been submitted through the information system but has not been approved by the end of the year, the 2026 RKAB approved by the Minister or Governor before the enactment of this Ministerial Regulation may still be used as the basis for exploration or production operations until March 31, 2026.
Second, to ensure the implementation of metal mineral and coal mining business activities in 2026, holders of IUP, IUPK, IUPK (as continuation of contracts/agreements for operations), KK, and PKP2B in the production and operation phase may refer to the 2026 RKAB approval document as part of a three-year RKAB approval (for 2024-2026 or 2025-2027), subject to the following conditions:
a. Having obtained approval for the 2026 RKAB as part of a three-year RKAB approval (for the 2024–2026 or 2025–2027 period);
b. Having submitted a request for approval of the 2026 RKAB adjustment through the relevant RKAB information system, but not yet approved;
c. Having set a reclamation guarantee for the 2025 production and operation phase;
d. Having obtained Forest Area Use Approval (PPKH) for the production and operation phase for holders of IUP, IUPK, IUPK as continuation of contracts/agreements for operations, KK, and PKP2B, whose mining business license area (WIUP), special mining business license area (WIUPK), or contract/agreement area is located within a forest area.
Third, holders of IUP, IUPK, IUPK as continuation of contracts/agreements for operations, KK, and PKP2B in the production and operation phase who meet the stipulations in point 2 may conduct mining activities not exceeding 25% of the approved 2026 production plan until March 31, 2026.
If the request for approval of the 2026 RKAB adjustment is approved, the issued RKAB approval will serve as the guideline for holders of IUP, IUPK, IUPK as continuation of contracts/agreements for operations, KK, and PKP2B in carrying out mining business activities during the production and operation phase.
This is the full text of the circular signed by the Director General of Minerals and Coal, Tri Winarno, on December 31, 2025.
It is hereby notified that the government had previously revised the policy regarding RKAB approval. Initially, the government set the RKAB submission period at three years. However, mid-year, the government changed the policy again, reverting the period to one year.
This may lead to delays in the approval of the 2026 RKAB. Taking these factors into account, the government (in this case, the Directorate General of Minerals and Coal) has adopted this compromise through a circular letter.
Written by Cora Ji, jiruyan@mysteel.com
