Indonesia's Ministry of Energy and Mineral Resources (ESDM) has confirmed that the Work Plan and Budget (RKAB) system for the mineral and coal mining sector in 2027 will not change, as the government will maintain the annual reporting mechanism rather than revert to a three-year system.
Director General of Mineral and Coal at ESDM, Tri Winarno, emphasized that the annual system has already been established as a joint decision with a clear legal basis. "It remains. The annual system is a joint decision," Tri said after a working meeting with Commission XII of the Indonesian House of Representatives at the Senayan Parliamentary Complex on Monday (August 31, 2026). Tri stressed that regulatory adjustments at the ministerial level still mandate annual mining operational reporting obligations. "The ministerial regulation still stipulates an annual system," he added.
The government's decision runs counter to calls from industry players. The Indonesian Mining Experts Association (Perhapi) believes that reverting the RKAB to a three-year system is a crucial step to address recurring delays in production permit approvals.
Perhapi Chairman Sudirman Widhy Hartono stated that a three-year reporting system is needed by mining companies to reduce bureaucracy and ensure long-term investment certainty. "Ideally, the RKAB document approval process should return to the previous three-year approval system, considering that the mining industry sector requires considerable investment," Sudirman said in an interview on Friday (August 28, 2026).
Sudirman added that legal certainty through medium-term permitting is essential for the continuity of mining operations, ensuring maximum contributions to both state revenue and investors. "Permit certainty is needed to guarantee legal certainty for the continuity of mining operations, so that the large investments made can generate profits for both the state and mining companies as investors," he emphasized.
Furthermore, Perhapi noted that delays in RKAB document approvals this year have significantly impacted the financial stability and cash flow of several mining companies. The uncertainty over approvals has forced a number of corporations to reduce mining production capacity, with some operators forced to temporarily suspend exploitation activities due to dwindling approved production quotas. "The knock-on effects have also impacted the operational continuity of mining service companies acting as contractors, even leading to temporary layoffs and, in some cases, workforce reductions," Sudirman said.
Previously, the government changed the RKAB permit policy from a three-year to a one-year duration. However, slow RKAB approvals at the start of the year triggered nationwide operational issues, forcing ESDM to issue temporary relaxation measures. Under Circular Letter No. 2.E/HK.03/DJB/2025, signed by the Director General of Mineral and Coal on December 31, 2025, holders of Mining Business Licenses (IUP), Special Mining Business Licenses (IUPK), Contracts of Work (KK), and Coal Mining Cooperation Agreements (PKP2B) in the production stage were permitted to mine up to 25% of their 2026 production targets until March 31, 2026.
