MEMR allows limited mining output amid 2026 RKAB delays
Tuesday, January 6 2026 - 07:20 AM WIB
The Ministry of Energy and Mineral Resources (ESDM) has allowed mineral and coal mining companies to continue production activities at up to 25% of their planned 2026 output, even if they have yet to receive approval for revisions to their 2026 Work Plan and Budget (RKAB).
The temporary measure is aimed at providing operational certainty for miners amid delays in the approval of 2026 RKABs, following regulatory changes that returned RKAB approvals to an annual basis after a brief shift to a three-year validity period.
Under the RKAB framework, mining companies in Indonesia are required to have an approved RKAB before they can carry out production activities. Starting in 2024, RKAB approvals were valid for three years (2024–2026), replacing the previous annual system. However, the ESDM Ministry last year announced a return to annual RKAB approvals beginning with the 2026 work plan. As of the end of 2025, the ministry had yet to complete approvals for many 2026 RKAB submissions, creating uncertainty for miners preparing to start production this year.
The approval delays have coincided with signals from the ESDM Ministry that it intends to curb coal and nickel output in a bid to help support commodity prices.
To address the transition, the ESDM Ministry issued Circular Letter No. 2.E/HK.03/DJB/2025 on the 2026 RKAB, signed by Director General of Minerals and Coal Tri Winarno on December 31, 2025. The provisions of the circular apply until March 31, 2026.
The circular refers to Minister of Energy and Mineral Resources Regulation (Permen ESDM) No. 17 of 2025, promulgated on October 3, 2025, which governs the procedures for the preparation, submission, and approval of RKABs, as well as reporting requirements for mining activities. The regulation requires companies to readjust their 2026 and 2027 RKABs that were previously approved under the three-year scheme, prompting the need for transitional arrangements while approvals are pending.
Under the circular, holders of Mining Business Permits (IUP), Special Mining Business Permits (IUPK), Contracts of Work (KK), and Coal Mining Concession Agreements (PKP2B) at the production stage may continue mining activities by referring to their previously approved 2026 RKAB. However, production is capped at a maximum of 25% of the total planned output for the year.
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“Mining activities may be carried out up to a maximum of 25% of the approved 2026 production plan until March 31, 2026,” the circular states.
The provision applies only to companies that meet several conditions. These include having previously obtained approval for a three-year RKAB covering 2024–2026 or 2025–2027, having submitted an application for adjustment of the 2026 RKAB through the official system but not yet received approval, having placed reclamation guarantees for the 2025 production operation stage, and holding approval for the use of forest areas (PPKH) for production activities in forest zones, where applicable.
Once approval for the adjusted 2026 RKAB is granted, the newly issued RKAB will serve as the sole guideline for production activities, the circular said.
The RKAB approval delays have already affected some mining companies. Integrated nickel miner PT Vale Indonesia Tbk temporarily suspended all mining operations within its IUPK areas after failing to secure approval for its 2026 RKAB. The company said it was legally unable to continue mining activities without the required approval.
“This condition results in the company being legally unable to conduct mining operational activities at this time,” Vale Indonesia Corporate Secretary Anggun Karya Nataya said in an information disclosure on Friday, January 2, 2026.
The suspension applies across all of Vale’s IUPK areas to ensure compliance with Indonesian regulations. While the company acknowledged that the RKAB delay has postponed operational plans in the field, it said the situation does not have a direct material impact on its financial condition.
Editing by Reiner Simanjuntak