Indonesia’s mining ministry said miners could produce 25% of their proposed 2026 output in the first quarter while the government processes their annual production quota plans, local media Bisnis.com reported on Monday, citing a ministerial letter.
All miners in mineral-rich Indonesia are required to submit an annual production plan, known as a RKAB, to the government for approval, determining how much they are allowed to produce per year.
Indonesia has shortened the validity of RKABs from three years to one year starting from 2026, and the government has ordered miners to re-apply for quotas previously issued for 2026 and 2027.
During the approval process for the new quota, miners are allowed to refer to the previously-approved 2026 quota until the end of March 2026 to decide how much to produce, according to ministerial regulations published in October.
The reduction in the length of the quotas had caused uncertainty in the industry, with nickel miner Vale Indonesia saying on Friday that it was suspending mining activities as their RKAB had not yet been approved.
Deputy mining minister Yuliot Tanjung said on Friday that the approvals were “currently being consolidated” and the nickel output quota would be adjusted to meet demand from domestic smelters.
Mining minister Bahlil Lahadalia said the government planned to slash mining output quotas this year to support prices, including coal prices, which have been sluggish.