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View all search resultsGovt scraps mining profit-sharing plan, relaxes coal and nickel quotas
Industry players welcomed the government's decision, viewing it as a positive step toward ensuring stability and investment certainty in the sector.
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Heavy equipment is operated at a coal mine in East Kalimantan owned by PT Berau Coal in this undated photograph. (JP/Indra Harsaputra)
T
he government has scrapped a planned profit-sharing scheme while relaxing coal and nickel production quotas to support industry stability.
Energy and Mineral Resources Minister Bahlil Lahadalia said on Monday that the profit-sharing model applied in the upstream oil and gas sector, namely cost recovery and gross split schemes, will not be extended to mineral and coal mining.
"In the mineral and coal sector, there are no changes at all. I need to emphasize that the existing regulations will remain unchanged. It is my duty to maintain that," Bahlil said at a press conference in Jakarta on Monday.
The minister also announced a relaxation of coal production targets.
The government had initially planned to cut output to 600 million tonnes this year, down from 834 million tonnes in 2024 and a 2025 target of 790 million tonnes. Bahlil said the government is monitoring geopolitical developments and global demand closely, noting that production should ideally rise when prices are favorable.
"If prices are good, we will increase production. If prices start to plateau, we will implement policies to maintain supply and demand," he explained.
On nickel, the government will adjust ore production in the 2026 annual production plan (RKAB) to match the needs of domestic smelters.
