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View all search resultsGovt to restore yearly approvals process amid coal price slump
The energy minister has announced the move to undo last year’s implementation of the three-year approval process via the e-RKAB platform, which had led to overproduction and weaker oversight as well as reduced tax collection.
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Piles of coal are seen on barges in Samarinda, East Kalimantan on Aug. 16, 2022. (AFP/Adek Berry)
E
nergy and Mineral Resources Minister Bahlil Lahadalia has said the government is reverting to an annual approval process for work and budget plans (RKAB) related to mineral and coal projects.
“Starting today, we accept the proposal from Commission VII to return the RKAB approval to once a year,” Bahlil said on Wednesday during his meeting with House of Representatives Commission VII, which oversees energy and mineral resources.
He was responding to the commission’s suggestion that a yearly approval process would allow the government to better monitor production levels, respond more quickly to market changes and prevent oversupply that could harm coal prices and state revenue.
The move signals tighter regulation and an effort to align production with market demand amid weakening commodity prices.
Read also: Indonesian exporters grapple with global shift to higher-grade coal
Under Government Regulation No. 25/2024, the current approval process occurs every three years through the e-RKAB online platform.
The government transitioned last year from the previous yearly cycle to streamline administrative processes and promote efficiency via the e-RKAB, which granted a longer planning horizon to permit holders in the production stage, reduced bureaucratic red tape and provided greater certainty for long-term contracts.
