Indonesia’s mining ministry allows mining companies to produce 25% of their proposed 2026 targets during the first quarter. This interim measure remains active while the government processes annual production plans (RKAB).

Starting this year, Indonesia shortened the validity of these quotas from three years to one, requiring all miners to reapply for previously granted 2026 and 2027 permits.

The policy change recently caused industry friction, leading Vale Indonesia to pause activities due to pending approvals. Deputy mining minister Yuliot Tanjung said that officials are currently consolidating these plans and will adjust nickel output to match domestic smelter needs.

Meanwhile, mining minister Bahlil Lahadalia intends to reduce overall production quotas this year to stabilize sluggish coal and mineral prices. By allowing the 25% threshold until March, the government aims to maintain supply while the new regulatory framework takes effect.