Indonesia Energy and Mineral Resources Minister Bahlil Lahadalia has clarified that the country will not alter existing mining provisions after confusion regarding the implementation of a gross split scheme.
The gross split scheme under the Energy Ministry “only exists in the oil and gas sector,” Bahlil said during a press conference on national economic growth. “Meanwhile, in the mineral and coal sector, there has been no change at all.”
According to Bahlil, regulatory certainty is essential for maintaining the investment climate and ensuring the sustainability of ongoing mining operations. Therefore, the government is committed to preventing any policy changes that could undermine business certainty in the sector.
“Friends of existing mining businesses, there are currently no changes to any regulations. There will be no changes to existing regulations. There will be no changes to any policies forever; it is my job to maintain them,” Bahlil stated.
He also shared that the government remains committed to ensuring an adequate supply of raw materials for downstream industries that have invested in Indonesia. Accordingly, the approval of companies’ Work Plans and Budget Plans (RKAB) will be aligned with industrial demand to maintain a reliable and resilient supply chain.
“To protect investments that have already been made in downstream industries, the government has an obligation to ensure that all raw materials sourced from our country remain available. Production capacity, industrial demand, and the RKAB allocations must be balanced so that industries can continue operating smoothly,” Bahlil said.
Bahlil added that the government is also closely monitoring global geopolitical developments that affect commodity prices, including coal. “In principle, the government, businesses and the public all share an interest in strong commodity prices. When prices are favorable, production should increase as well. That way, businesses benefit, the state benefits, and the public also enjoys the positive impact,” he said.
Indonesia will continue to implement measured production adjustments in line with market conditions to maintain a balance between supply and demand and help stabilize commodity prices.