Mining Association Requests Review of RKAB, Bahlil: Don't Sell State Assets Cheaply

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia spoke out regarding the request of the Indonesian Mining Association (API-IMA) regarding the review of the policy on the determination of coal and nickel production quotas for 2026.

Bahlil said that the reduction of nickel and coal production quotas had increased the existing demand and supply so that commodity prices did not fall.

"I said that supply and demand. What if we produce a lot at a falling price, don't sell our state property cheaply," said Bahlil, quoted on Saturday, February 14.

Furthermore, the Chairman of the Golkar Party emphasized that the processing of mineral and coal mines must be carried out continuously.

"The management of this mine must be sustainable. There are our grandchildren who must also continue this nation," said Bahlil.

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.

Previously, IMA's Executive Director, Sari Esayanti, explained that this significant reduction in quotas would affect the company's long-term planning, including investment decisions, operational management, and sales contract commitments that have been prepared taking into account 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.