- Indonesia reduces mining production quotas from three years to one year, starting in October.
- New rules require funds for land rehabilitation before RKAB approval is granted.
- Miners must reapply for 2026 and 2027 quotas under new regulations.
Indonesia announced it would reduce the validity of mining production quotas from three years to one year starting October 3, as the government aims to exert greater control over output levels to bolster the prices of commodities such as coal and nickel. The action was indicated in July by Mining Minister Bahlil Lahadalia.
Quotas for 2025 are still in effect, but miners must submit new applications for the mining quotas that were granted for 2026 and 2027, according to the ministry. The submission period for RKAB proposals, which are documents utilized by companies to request the quantities they can mine over a specified timeframe, should be from October 1 to November 15 annually, it noted.
The coal miners' group APBI expressed hope that the limited time remaining for RKAB submission and approval for 2026 would not affect miners' activities. "According to APBI executive director Gita Mahyarani, this is strongly linked to reliability in business sustainability, spanning from investments to contract execution."
Also Read: China, Malaysia Discuss Rare Earths Refinery Joint Venture
According to the new regulations, miners will need to demonstrate that they have reserved a specific sum of money for land rehabilitation after mining, before obtaining their RKAB approval. Last month, the ministry revoked 190 mining permits as companies did not fulfill their responsibilities to restore affected land or adhere to production quotas, according to state media Antara.
Indonesia's choice to reduce the duration of mining production quotas indicates the government's heightened regulation of the industry. The initiative is anticipated to boost adherence, stabilize market prices, and promote sustainable mining methods.