Government defends regulatory changes as policy responsiveness
Saturday, October 4 2025 - 08:47 AM WIB
By Adianto P. Simamora
Frequent changes in Indonesia’s mining regulations are not signs of inconsistency but rather a reflection of the government’s need to adapt to evolving global dynamics, said Siti Sumilah Rita Susilawati, Secretary of the Directorate General of Minerals and Coal at the Ministry of Energy and Mineral Resources (MEMR).
Responding to concerns from industry stakeholders about regulatory uncertainty, Siti emphasized that recent policy adjustments are based on data, research, and risk mitigation studies conducted by the government.
“It may appear inconsistent, but the government continues to strive for consistency within the context of current conditions,” she said during a panel discussion at the Indonesia Green Mineral Investment Forum (IGMIF) 2025 on Thursday.
Siti noted that global challenges—such as shifting geopolitical dynamics and market imbalances—have compelled the government to act swiftly. She cited the example of policy durations initially set for three years but later shortened to one year due to unexpected market responses.
Read also: Government eyes postpaid environmental permitting for efficiency
“At the time, the three-year duration was chosen based on geopolitical and other considerations—it was intended to ease business operations. But in practice, it created a supply-demand imbalance, prompting a reassessment,” she said, referring to the policy on Work Plans and Budget (RKAB).
Starting in 2026, the MEMR will reinstate the annual submission requirement for RKAB, reversing the three-year cycle introduced in 2023. The move aims to better align mining production with market demand amid concerns over oversupply and declining commodity prices, particularly in the coal, nickel, and bauxite sectors.
Siti also highlighted the government’s ongoing engagement with industry associations and stakeholders, stressing that all new regulations undergo continuous review.
“We understand and welcome various inputs. The point is, we’re open to feedback—but the government’s actions are rooted in research and ongoing evaluation,” she said.
Her remarks come amid growing calls from industry groups for clearer, long-term policy direction to support investment planning and ensure operational stability in Indonesia’s downstream mining sector.
Editing by Reiner Simanjuntak