Indonesia's Ministry of Energy and Mineral Resources (ESDM) said it is still evaluating 2026 Work Plan and Budget (RKAB) revision requests submitted by about 50 mining companies. Director General of Mineral and Coal Tri Winarno said the evaluation focuses on the feasibility of the applications and their compliance with administrative and technical requirements. He noted that the ministry is prioritizing applications submitted before the July 31 deadline and is still screening which companies' planning documents do not yet meet the requirements.
Tri also said the government has implemented stricter rules in the RKAB process. Companies with outstanding receivables or unfinished reclamation obligations are not allowed to proceed with RKAB applications. This policy further raises the compliance threshold for miners.
Previously, ESDM confirmed that the 2027 RKAB will continue to use the annual reporting system, with no return to a three-year scheme. Tri emphasized that the annual system is a joint decision with a clear legal basis, and that ministerial regulations still stipulate a one-year reporting obligation for mining operations.
The government's decision stands in sharp contrast to calls from the Indonesian Mining Experts Association (Perhapi). Perhapi believes restoring a three-year approval system is key to addressing recurring risks of production permit delays. Perhapi Chairman Sudirman Widhy Hartono said a three-year reporting system would help reduce bureaucracy and ensure long-term investment certainty, stressing that permit certainty is crucial for the continuity of mining operations.
Perhapi also noted that RKAB approval delays this year have significantly affected the financial stability and cash flow of several mining companies. Some companies have been forced to reduce mining capacity, and some operators have temporarily suspended extraction due to insufficient approved production quotas. The knock-on effects have also hit mining service contractors, leading to temporary layoffs and even workforce reductions.
