Government Asked to Review and Increase Coal and Nickel Production Quota

JAKARTA - The Indonesian Mining Association (API-IMA) hopes that the government can review the policy of setting quotas for bauxite and nickel production for 2026. This request follows the government's decision to lower the national production target for both commodities.

The coal production quota for 2026 is set at around 600 million tons, or a reduction of around 190 million tons compared to the realization of 2025 which reached 790 million tons. Meanwhile, for nickel ore, the production limit has decreased to 250-260 million tons from the 2025 RKAB of 379 million tons.

IMA Executive Director, Sari Esayanti, explained that this significant reduction in quotas will have an impact on the company's long-term planning, including investment decisions, operational management, and sales contract commitments that have been prepared considering global market dynamics.

"Social and economic impacts, such as labor absorption and regional revenue, also need to be a concern," he said in a statement to the media, Thursday, February 12.

He added that the restriction of coal quotas also has the potential to create a supply gap in the export market that can be taken advantage of by other countries, such as China, which is known to have the capacity to increase its domestic production.

"This condition is feared to affect Indonesia's coal production plans in the future," he continued.

Meanwhile, continued Sari, the reduction of nickel quotas has the potential to impact the certainty of raw material supply for downstream industries in the country and the company's long-term investment plan which has been prepared based on the previous RKAB approval.

"We understand the importance of the government's role in maintaining market balance and sustainability of natural resource management. However, production restrictions need to be implemented through an inclusive process by involving input from industry players, especially companies that are directly affected," said Sari.

Furthermore, Sari emphasized that IMA and all its members always support government policies in order to optimize state revenues and sustainable management of natural resources.

Therefore, he said, IMA hopes that there will be a constructive dialogue space so that the policy on the quota for the production of coal and nickel in 2026 remains in line with national goals, without neglecting the sustainability of the industry, business certainty, and Indonesia's competitiveness in the global market.