The government is proposing a revision of the Work Plan and Budget (RKAB) scheme for the mineral and coal sector from the original three-yearly to annual. This proposal has sparked debate among mining industry players and the Indonesian House of Representatives. The Indonesian Coal Mining Association (APBI) through Acting Executive Director Gita Mahyaran, stated that this change should not be rushed and must be based on clear policies and mechanisms. APBI is still waiting for official direction because the three-yearly regulation is still valid until 2026. According to APBI, the current three-year scheme is more efficient and provides space for mature business planning for business actors. On the other hand, Commission XII of the Indonesian House of Representatives and Minister of Energy and Mineral Resources Bahlil Lahadalia support the change to an annual scheme. Deputy Chairman of Commission XII, Bambang Haryadi, is of the opinion that the long-term RKAB causes a mismatch between production targets and domestic industry needs, citing the case of excess bauxite supply. Minister Bahlil Lahadalia acknowledged that the three-year scheme had led to a surge in mineral and coal production without considering global demand, resulting in an oversupply in the market. He said that Indonesia supplies almost half of the world's coal needs, which has led to a decline in global prices. For 2025, the government has set a coal production target of 735 million tons, down significantly from 836 million tons in the previous year. The government is also evaluating the process of granting the RKAB as a whole to prevent future oversupply. (ICE GIACARTA)

Fonte notizia: Electricity Indonesia News - 04/07