RKAB Application Wants To Be Changed Once A Year, Vale: We Are Ready Only

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia together with Commission XII agreed that the approval of the mining Work Plan and Budget (RKAB) would be carried out annually.

Responding to this, PT Vale Indonesia Tbk (INCO) said the decision had no effect on the company at all. The reason is, previously this nickel mining company had submitted an RKAB application every year, before it was later changed to three years once.

"Nothing is different, we have also previously submitted RKAB every year. We are ready, nothing has changed," said PT Vale Indonesia's Head of Corporate Finance & Investor Relations, Andaru Brahmono Adi when met at Astha, Friday, July 18.

Andaru said that both of them actually had a similar process so that it would not be a problem for Vale. In the process of submitting, the company must apply for RKAB to all blocks.

"The process is the same. It's been a year, the three years are the same," he added.

Meanwhile, Vale is currently submitting RKAB to a mine in the Bahodopi area, Morowali, Central Sulawesi for 2025.

Previously in a Working Meeting (Raker) with Commission XII of the DPR RI, Bahlil had accepted the proposal of council members to evaluate RKAB every year.

"Starting today, by saying bismillahirrahmanirrahim, we will accept a proposal from Commission XII for us to make RKAB per year," said Bahlil, Wednesday, July 2.

In accordance with Government Regulation (PP) Number 25 of 2024 concerning Procedures for Preparation, Submission, and Approval of Work Plans and Budgets as well as Procedures for Reporting on the Implementation of Mineral and Coal Mining Business Activities, mining companies can apply for RKAB to produce for three years.

The policy initially aimed at providing business certainty for mining companies, as well as simplifying the administrative process without reducing the substance in the evaluation process.

However, Bahlil assessed that the granting of RKAB approval within three years caused mining production activities to become difficult to match the world's demand.

"As a result of the RKAB jor-joran that we did together, it was the fruit that we couldn't control between coal production and world demand. What happened? The price fell," said Bahlil.