Indonesia has announced a change in the validity of mining production quotas, reducing the period from three years to one year as of 3 October.
The government aims to exert more control over output levels to stabilise commodity prices, including those of coal and nickel, reported Reuters.
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This move was initially indicated by the country’s Mining Minister, Bahlil Lahadalia, in July.
According to the ministry, quotas for 2025 will still be in effect. However, miners are required to reapply for quotas that were granted earlier for 2026 and 2027.
Companies are required to submit their work plan and budget (RKAB) proposals between 1 October and 15 November each year.
RKAB proposals are documents used by companies to request approved mining volumes for a set period.
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By GlobalDataThe Indonesian Coal Mining Association (APBI) expressed concern over the limited time for RKAB submission and approval for 2026 and hoped that it will not affect mining operations.
APBI executive director Gita Mahyarani was quoted by the news outlet as saying: “This is closely related to certainty in business sustainability, from investment to contract fulfilment.”
According to the updated regulations, miners must now demonstrate that they have allocated a specific amount of funds for land rehabilitation after mining activities are completed, as a prerequisite for obtaining their RKAB approval.
This requirement aligns with the ministry’s recent suspension of 190 mining permits due to non-compliance with land rehabilitation and production quotas, according to a report by state media outlet Antara.
Last month, a 148-hectare (ha) area at PT Weda Bay Nickel’s concession was seized for lacking a necessary forestry licence.
The Indonesian taskforce also seized a 173ha area managed by PT Tonia Mitra Sejahtera in south-east Sulawesi.
These moves impacted nickel prices as Indonesia is the largest producer of nickel products in the world.
