The Association of Indonesia Nickel Miners (APNI) has called on the government to ensure the current three-year validity of mining quotas remains unchanged, opposing plans to reduce the duration to one year.
The mining ministry’s recent announcement to shorten the quota period aims to better regulate supply and support commodity prices, including coal and nickel, according to a Reuters report.
The APNI argues that this change could lead to bureaucratic bottlenecks and hinder the sector’s stability.
In 2023, Indonesia extended the validity of mining quotas, known as RKABs, from one to three years to alleviate the approval process for both authorities and applicants. However, companies are still able to propose annual revisions to their quotas.
APNI warns that reducing the quota duration could create unnecessary complications in the approval process, as thousands of miners would be required to seek new quotas each year, the report said.
The association emphasised the importance of medium-term certainty for investment and operational planning in the mining industry.
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By GlobalData“The government needs to strengthen internal evaluation and oversight capacity, not lengthen the bureaucratic chain with shorter licensing periods,” stated APNI.
Indonesia’s deputy mining minister Yuliot Tanjung acknowledged that details of the change are “still being formulated” and chose not to comment on the association’s request.
The ministry reiterated that the proposed plan is designed to maintain price stability and mitigate the impact of price drops on government revenue.
In addition, the Indonesian Government is preparing to impose sanctions on companies for environmental violations at the Morowali Industrial Park (IMIP), a key site for the country’s nickel production.
The Ministry of Environment has identified several issues, including inadequate wastewater management, air pollution, and the use of unlicensed tailing areas, which will result in government directives and fines for those violating environmental regulations.
