Bambang Tjahjono, Executive Director of the Indonesian Mining Services Association (Aspindo), pointed out at the 2026 Indonesian Mining Outlook event held recently in Jakarta that the mining sector, including nickel, is facing multiple challenges, stemming from both global commodity price volatility and a series of domestic Indonesian policies.
In his speech, Bambang stated that although many large mining contractors have invested millions of dollars in digital technologies such as fleet management systems to improve operational efficiency, these investments have yet to effectively reduce overall operational costs.
He also questioned the current tax policy on heavy equipment. He argued that tax pricing should be based on general market prices, but the government typically only reduces the tax rate by about 10% annually.
Regarding energy policy, Bambang expressed reservations about the biodiesel blending mandate. He suggested that the current policy places more pressure on end consumers than on the production side, recommending that fuel quality be prioritized over mandatory annual increases of 10 percentage points when raising the blending ratio.
Concerning policy trends aimed at limiting mineral production, Bambang urged decision-makers to conduct careful evaluations. He noted that Indonesia's share of global supply is not sufficient to influence price trends, and simply limiting production may not yield the expected price benefits.
Furthermore, he raised doubts about the government's plan to encourage micro, small, and medium enterprises (MSMEs) to participate in mine management. He stated that mining operations require the payment of a reclamation guarantee fund, and it remains questionable whether MSMEs possess the corresponding financial capacity. The practical conditions at the implementation level need to be fully considered before relevant policies are enacted.
Written by Cora Ji, jiruyan@mysteel.com
