Energy costs, regulatory uncertainty top concerns for Indonesia mining firms, Petromindo Survey shows

Rising energy costs and regulatory uncertainty are the top challenges facing Indonesia’s mining industry as companies navigate global market volatility and shifting domestic policy conditions, according to a new survey by Petromindo Survey Division.

The survey, titled Research Report: Survei Strategi Industri Tambang dalam Menghadapi Ketidakpastian Global dan Dinamika Regulasi, found that rising energy costs scored 4.23 out of 5 among respondents, making it the most significant challenge currently affecting mining businesses. Regulatory uncertainty, including issues related to RKAB and DMO policies, followed with a score of 4.05 out of 5.

The pressure is already affecting operations. About 75% of respondents said their companies are experiencing increased operating costs, while 57.81% cited production uncertainty related to RKAB or work plan quotas. Reduced profit margins were also cited by 51.56% of respondents.

The findings highlight the growing pressure on mining companies as they seek to maintain operational stability while adjusting to policy and market uncertainty.

More than half of respondents, or 56.25%, viewed the current production control policy under RKAB as overly restrictive. The sentiment was shared across company sizes, including small, medium and large-scale operators.

Respondents also showed support for production relaxation as a possible measure to address global uncertainty. The option received an average score of 4.02 out of 5, indicating general agreement. Around 53.13% of respondents said production relaxation would help maintain operational stability, although 18.75% warned that it could risk oversupply and lower commodity prices.

In response to the current environment, mining companies are prioritizing cost control and operational adjustments. About 81.25% of respondents said their companies are implementing operational cost efficiency measures, while 60.94% are adjusting production in line with RKAB.

Improving fuel efficiency was the main response to rising energy costs, cited by 65.06% of respondents. Among mineral companies, 31.8% said they are diversifying supply sources to manage supply chain risks, while 27.3% are securing long-term contracts.

Despite the uncertainty, downstream development remains on the agenda for mineral companies. Around 63.6% of mineral respondents said they are continuing downstream initiatives with adjustments, while 27.3% said they are aggressively pursuing downstream expansion.

The survey also found that regulatory certainty is the most needed form of government support for the mining sector. Around 77% of respondents cited policy consistency, including in RKAB and DMO regulations, as the top priority.

Other forms of support needed by the industry include investment facilitation, energy price stability, fiscal and operational incentives, protection against commodity price volatility and production relaxation policies.

The survey was conducted from April 21 to May 18, 2026, through an online quantitative questionnaire using non-probability purposive sampling. Respondents included mining professionals, company representatives and personnel with knowledge of business operations and strategy in Indonesia’s mineral and coal mining sector.

Petromindo Survey noted that the survey was conducted before the official announcement of Danantara SI, meaning the findings may not reflect industry perceptions following the formal launch of that policy.

The report suggests that Indonesia’s mining companies are not only facing external pressures from global uncertainty, but also internal policy-related challenges that are shaping their business strategies. For many companies, regulatory clarity may become a key factor in determining how they manage costs, production planning and investment decisions over the next one to two years.

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Petromindo Survey
Email: survey@petromindo.com

Download the survey report: here