Indonesian Ministry of Energy and Mineral Resources (ESDM) has mandated that mining companies submit their Work Plans and Budgets (RKAB) for the upcoming year no later than October 2025.
Tri Winarno, Director-General of Minerals and Coal at the ESDM Ministry, confirmed that the requirement applies to all companies, including those operating under the current three-year RKAB period.
"This submission will still be required in October, even for companies with an active (three-year) RKAB. The new plan will take effect for 2026," Tri told reporters in Jakarta on Tuesday, July 22, 2025.
The policy change is part of a broader transition back to an annual RKAB submission schedule starting in 2026.
Tri previously explained that the updated RKAB system would be managed digitally to streamline the administrative process. He noted that a manual, human resource-intensive approach would slow down approvals significantly.
"We’ve already prepared the regulations and built the system. If we depend on manual processes, it will take too long," he said at a recent briefing at the ESDM Ministry.
According to the Ministry, mining operators across the mineral and coal sectors have been notified of the upcoming changes.
"We’ve already informed them. Today, we held a Zoom meeting with mining companies to explain the new system," Tri added.
Read also : Govt confirms annual RKAB to take effect starting 2026
However, industry players have raised concerns about the shift. Gita Mahyarani, Executive Director of the Indonesian Coal Mining Association (APBI), warned that the change could impact administrative efficiency and investment certainty within the coal mining sector.
"This will affect investment certainty. Under the three-year scheme, planning for investments such as heavy equipment is more secure," Gita said.
She acknowledged that while current RKABs will remain valid until 2026, mining companies will need to begin submitting annual plans starting next year.
Gita also highlighted that the three-year scheme has historically provided greater assurance for long-term contracts and sales.
The Indonesian Nickel Miners Association (APNI) has also raised concerns over the government’s plan to revert the submission period for the RKAB from three years back to an annual basis, warning that such a move could disrupt investment flows, reduce operational efficiency, and strain regulatory oversight capacity.
The transition to annual RKAB submissions follows a statement by Energy and Mineral Resources Minister Bahlil Lahadalia on July 14, confirming that the change will be implemented starting in 2026. The decision follows consultations with Commission XII of the House of Representatives (DPR RI), which has advocated for the policy adjustment to better align mining production with actual market demand.
This marks a reversal of the three-year submission scheme introduced under MEMR Regulation No. 10/2023. The earlier system had aimed to streamline approvals but has been criticized for contributing to oversupply and falling commodity prices, particularly in the coal, bauxite, and nickel sectors.
The debate over RKAB submission frequency was reignited during a meeting on July 2 between the ESDM Ministry and Commission XII, where lawmakers raised concerns about the market impacts of multi-year approvals.
Editing by Reiner Simanjuntak
