Senior official reaffirms Indonesia’s mining output controls

By Adianto P. Simamara

The government will maintain firm control over coal and mineral production volumes to safeguard long-term industry sustainability and market balance, Director General of Mineral and Coal Tri Winarno said.

Speaking at an industry forum organized by Petromindo in Jakarta on Friday (February 27, 2026), Tri stressed that production adjustment is not a short-term corrective move but a strategic policy direction aimed at preserving economic balance and resource longevity.

“The mineral and coal mining industry has recently experienced a slight contraction as a result of government production control, but this is a deliberate measure to maintain industry sustainability for future generations,” he said.

He insisted that the government’s primary objective is to keep the market balanced so that the commodity prices reflect their fair economic value.

“The essence of production control is not to restrict growth but to keep the industry healthy and resilient,” Tri said.

In the nickel sector, Tri noted that Indonesia currently contributes about 65 percent of global supply, with global nickel inventories hovering around 250,000 tons.

Read also: Indonesia rules out raw mineral exports as US seeks smelter curbs in trade deal

Nickel prices, he said which dipped to around US$14,000–14,500 per ton in early December, have since rebounded to approximately US$18,400.

Nickel RKAB approvals for 2025 are set between 400–410 million tons, with realized ore output expected at about 290 million tons.

The shortfall between approval and realization, said Tri, reflects challenges such as environmental permitting, equipment readiness, and infrastructure limitations.

Tri also argued the role of production control in balancing the broader energy landscape.

“Indonesia’s oil output has continued to decline, and therefore coal must continue to play a stabilizing role in national energy security—while still pursuing sustainability commitments,” he said.

He added that the government will continue evaluating market conditions periodically and adjust policies as necessary to maintain stability across mining commodities, including coal, nickel, copper, and bauxite.

Beyond output regulation, Tri added that the government would remain committed to downstreaming and industrial value addition as part of Indonesia’s long-term economic agenda.

“Commodity prices may fluctuate, but downstream products generally maintain more stable values. This is the essence of our push for mineral processing and product diversification,” he said.

Editing by Reiner Simanjuntak