The Indonesian Government has issued Minister of Energy and Mineral Resources Regulation No. 17 of 2025*, effective 3 October 2025, marking a significant shift in how mineral and coal mining operations are planned and monitored. The new framework replaces the previous three-year Work Plan and Budget (Rencana Kerja dan Anggaran Biaya – “RKAB”) cycle with an annual submission requirement, introducing a faster approval process and a fully digital reporting mechanism through the MinerbaOne system. The regulation seeks to strengthen state oversight of production and sales amid declining global commodity prices while improving administrative efficiency.
Under the new regime, holders of (i) a Mining Business License (IUP**) – Exploration stage, (ii) a Special Mining Business License (IUPK***) – Exploration stage, (iii) an IUP – Production Operation stage, (iv) an IUPK – Production Operation stage, and (v) an IUPK as a Continuation of Contract/Agreement Operations — in the mineral and coal sector (collectively, the “Mining Companies”) — are required to submit their RKAB annually. Submissions for the following year must be made between 1 October and 15 November through the MinerbaOne system.
A key reform lies in the accelerated approval process. Once a complete RKAB is submitted, the Government has five working days to review and either grant approval or request revisions. Mining Companies are then given two working days to make corrections, with up to three rounds of revisions permitted. Following the final resubmission, a decision must be issued within eight working days. If no decision is made within this timeframe, the RKAB is automatically approved, provided the submission is complete. This marks a major improvement compared to the previous system, which allowed up to 30 working days for evaluation and approval. Should an application be rejected, companies may resubmit their RKAB once.
The regulation also reinforces compliance obligations. Failure to submit an RKAB or non-compliance with the approved plan may result in administrative sanctions, including written warnings, temporary suspension of operations, or licence revocation. In addition, Mining Companies that exceed their approved production volume will face a reduction in production quotas for the following year, proportionate to the excess output.
To ensure a smooth transition, RKABs for 2025 approved prior to the regulation’s enactment remain valid. However, RKABs for 2026 and 2027 that were approved under the previous regime must be adjusted and resubmitted through MinerbaOne to align with the new requirements.
*Regulation of the Minister of Energy and Mineral Resources Number 17 of 2025 regarding Procedures for the Preparation, Submission, and Approval of Work Plans and Budget, and Procedures for Reporting the Implementation of Mineral and Coal Mining Business Activities
**Mining Business Licenses/Izin Usaha Pertambangan (IUP)
***Special Mining Business Licenses/Izin Usaha Pertambangan Khusus (IUPK)