Friday, July 12, 2024

Delay in RKAB approval leads to halted operations of bauxite mines

Reading Time: 2 minutes
Audina Nur




The Indonesian Association of Bauxite and Iron Ore Entrepreneurs (APB3I) has regretted the delay in the issuance of the 2024-2026 Work Plan and Budget Approval (RKAB) for bauxite mining companies until early this year, citing that it would halt operational activities of dozens of association members.

Acting Chairman of APB3I, Ronald Sulistyanto, said the slow approval from the Ministry of Energy and Mineral Resources (ESDM) has caused dozens of mining companies to cease production amidst the ban on bauxite exports.

He said that domestic alumina factories are already requesting for raw materials from bauxite miners. “Until today, the approval hasn’t been issued as yet. Currently, only around 10 or 12 bauxite miners have submitted their RKAB, which is very few. Without the RKAB, we cannot operate,” Ronald said as quoted by on Tuesday, February 13, 2024.

He added that this situation had also halted negotiations to attract funding from potential investors for the continued construction of smelters.

Ronald said that some investors, who were considering investing in the 10 smelters currently under construction, are now hesitant to invest due to the halt in upstream mining production earlier this year. According to records from ESDM, there are 80 companies holding bauxite mining business permits (IUP). Out of these 80 registered IUPs, only about 15 to 16 companies of them having submitted RKAB in 2023.

From 2022 to 2023, domestic bauxite input capacity was at 13.88 million tons. The production plan for bauxite RKAB for this year is set at around 14 million tons. “The future bauxite production plan may match the input capacity of the currently operational smelters since there is no relaxation policy for bauxite ore export, which is 14 million tons,” Director of Mineral and Coal Program Development at the Energy and Mineral Rources Ministry, Julian Ambassadur Shiddiq, said.

Apart from the joint venture efforts of Inalum and Antam, seven IUPs are currently establishing smelters, including PT Quality Sukses Sejahtera, PT Dinamika Sejahtera Mandiri, PT Parenggean Makmur Sejahtera, PT Persada Pratama Cemerlang, PT Sumber Bumi Marau, PT Kalbar Bumi Perkasa, and PT Laman Mining. These eight new smelter plans have a bauxite input capacity of 27.41 tons and an alumina production capacity of 9.98 million tons. However, Indonesia currently only has one aluminum plant owned by PT Indonesia Asahan Aluminium or Inalum in Kuala Tanjung,North Sumatra, with an alumina input capacity of around 500,000 tons annually.

Audina Nur






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email

Add keywords to your market watch and receive notification:
No topics
Schedule a free consultation with us:

We’ll contact you for confirmation.


PT Kilang Pertamina Internasional (KPI), a subsidiary of State oil and gas company Pertamina, is inviting investors to join the Green Refinery Cilacap project, which has completed its first phase construction and is moving forward with Phase 2.
Indonesia’s utilization of geothermal energy has reached just 2.4 gigawatts (GW), a mere 10 percent of its total potential of 23.9 GW that industry players call for clearer regulations and incentives from the government to optimize this significant renewable energy resource.
With the 79th Indonesia Independence Day celebration approaching in a month, rumors have emerged regarding President Joko “Jokowi” Widodo’s potential delay in relocating his office to the new capital city, Nusantara (IKN).
A senior officer with PT Bank Danamon Indonesia (BDMN) reveals that the bank aims for double-digit loan growth in 2024 upon monitoring positive trend of the bank’s lending so far.
The government will issue permit extension for PT Freeport Indonesia (PTFI) before the end of President Joko “Jokowi” Widodo administration in October 2024, said Minister of Investment/Head of Investment Coordinating Board Bahlil Lahadalia on Thursday, July 11, 2024.
The House of Representatives (DPR) on Wednesday, July 10, 2024, approved a proposal for State Capital Injection in 2025 for State utility company PT PLN amounting to Rp3 trillion (US$185 million) to support the company’s 100 percent Electrification Ratio and Village Electricity Ratio (RDB) as part of its commitment on energy justice, particularly in Disadvantaged, Frontier, and Outermost (3T) regions.