Indonesia's energy ministry has confirmed that the 2027 mining work plans and budgets (RKAB) for the minerals and coal sectors will remain on an annual reporting basis, ruling out a return to the previous three-year scheme. The decision was announced by Tri Winarno, director general of minerals and coal at the Ministry of Energy and Mineral Resources (ESDM), after a parliamentary meeting on August 31.

The decision follows ESDM Regulation No. 17 of 2025, which shortened RKAB validity from three years to one year effective October 3, 2025, enabling more flexible production oversight and supporting price stability, Bloomberg quoted Tri as saying.

For the coal industry, annual RKAB approvals allow the Indonesian government to exercise stricter control over coal supply, maintain a balance between supply and demand, and prevent price volatility from uncontrolled output. The previous three-year scheme made it difficult for authorities to adjust production levels flexibly.

The decision has drawn strong opposition from industry players. The Indonesian Mining Experts Association (Perhapi) argues that restoring the three-year scheme is key to resolving approval delays. Association Chairman Sudirman Widhy Hartono said mining requires large-scale investment, and three-year permits would provide companies with long-term investment certainty and reduce bureaucratic procedures.

Perhapi noted that RKAB approval delays this year have significantly affected the financial stability and cash flow of several mining companies, with some forced to cut capacity or suspend operations. Mining service companies have also been impacted, with temporary worker stoppages and even layoffs.

Under current rules, mining companies must submit RKAB applications for the following year between October 1 and November 15. Following operational disruptions caused by slow approvals earlier this year, the ministry issued temporary easing measures allowing companies to mine up to 25% of their annual targets until March 31, 2026.