Jakarta suspends mining permits for errant companies

Market: Coal
10/02/22

Indonesia's energy ministry (ESDM) has temporarily suspended the operations of over 1,000 companies involved in coal and mineral mining who have failed to submit their 2022 Work Plan and Budget (RKAB) plans.

Most of the mines are small and have combined output of around 4.5mn-5.3mn t, the ESDM estimates. The ban was implemented on 7 February and will run until 7 March.

The RKAB serves as mining companies proposed operational target for the year. They are then used by the government to map out the national target for the year. The ESDM requires all mining companies to submit RKABs for government approval, with each company given a production quota. This system is meant to monitor and maximise the country's mineable reserves.

Companies that failed to submit their RKABs will be prohibited from carrying out construction, mining, processing and refining activities, as well as transportation and sales, including further exploration activities before their annual RKAB is approved.

The companies will be given 60 days to submit their work plans to the ESDM for approval. The ESDM will revoke the company's mining permit if it fails to submit the documents within the period.

By Antonio delos Reyes

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