Indonesia's Ministry of Energy and Mineral Resources (ESDM) is accelerating the approval process for 2026 Work Plans and Budgets (RKAB), aiming to complete it before the March 31 grace period ends. Mining companies that have yet to receive RKAB approval may still continue production under government policy, albeit with restricted output.
Tri Winarno, Director General of Minerals and Coal at ESDM, recently revealed at the Coordinating Ministry for Economic Affairs office that the total number of nickel companies that have secured RKAB approval may exceed 150. Previously, the Directorate General announced on February 10 that the 2026 nickel ore production quota had been set between 260 million and 270 million tons, marking a significant decrease from the previous year's production target of 379 million tons.
Tri noted that several nickel mines operated by PT ANTAM have yet to receive RKAB approval, though he did not disclose specific numbers or locations.
According to Circular Letter No. 2.E/HK.03/DJB/2025 issued by ESDM on December 31, 2025, mining license holders in the production stage who have been included in the approved three-year RKAB for 2024–2026 or 2025–2027, and who have submitted a 2026 RKAB adjustment application that remains pending, may continue mining operations during the grace period provided they meet conditions such as reclamation guarantees and forest area permits. However, the circular explicitly stipulates that production under such temporary authorization shall not exceed 25% of the approved 2026 production plan. The grace period policy is valid until March 31, 2026.
Once a single-year 2026 RKAB is approved, the newly issued RKAB will officially serve as the implementing basis for license holders to carry out mining operations.
Written by Cora Ji, jiruyan@mysteel.com
