Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia on Monday assured investors that Indonesia will not alter its existing mining regulations, seeking to provide policy certainty as downstream processing investments continue to expand and global commodity markets remain volatile.

Bahlil said the government had recently held extensive discussions on policy formulation aimed at ensuring a stable business environment, particularly for the mining sector

“I want to emphasize that the gross split scheme under the Energy Ministry applies only to the oil and gas sector. There are absolutely no changes in the mineral and coal sector. Existing regulations will remain unchanged. It is my responsibility to safeguard that certainty,” Bahlil said after a press conference along with House of Representatives leaders and several cabinet ministers at the Parliament Complex in Senayan, Jakarta.

He said the government remains committed to ensuring sufficient raw material supplies for downstream industries that have invested in Indonesia. As such, the approval of companies’ Work Plans and Budget Plans (RKAB) will be aligned with industrial demand to maintain a reliable 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,” he said.

Bahlil added that the government is also closely monitoring global geopolitical developments that affect commodity prices, including coal. Ongoing tensions in the Middle East and fluctuations in international markets remain important considerations in determining national production policies.

“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.

Bahlil added that the government 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.

“If prices remain strong, we will increase production. If prices begin to plateau, we will introduce policies to maintain a healthy balance between supply and demand,” he said.

Bahlil also reassured existing mining operators that there is no need to worry about potential policy shifts. The government will continue to apply the current regulatory framework while implementing the Mining Law mandate, which provides priority access for small and medium-sized enterprises and certain strategic sectors to support downstream industrialization and increase domestic value-added activities.

Add as a preferred source on Google +