A New Direction for Mining in West Nusa Tenggara in 2026

For NTB, there is a trend that could present an opportunity. Gold remains a strategic regional commodity, and price stability—or even appreciation—could strengthen regional revenues through taxes, levies, and revenue-sharing mechanisms.

By Niken Arumdati, ST, M.Sc

The policy to curb mineral and coal production under the 2026 Work Plan and Budget (RKAB) marks a significant shift in Indonesia’s national mining governance. The central government is seeking to manage supply in response to weakening global commodity prices caused by oversupply. This approach can be understood as a form of market discipline. However, for resource-producing regions such as West Nusa Tenggara (NTB), the implications go far beyond production volumes. The policy directly affects regional economic stability, business certainty, and the sustainability of local development.

NTB has long been one of Indonesia’s key provinces in metallic mineral production, particularly copper and gold, alongside various associated minerals. The presence of large-scale mining operations as well as artisanal and small-scale mining activities has made the sector a backbone of the local economy in several areas. Consequently, national mining policies must be assessed through a regional lens to avoid unintended ripple effects that could slow local economic growth and trigger social pressures.

While the production cuts for nickel and coal do not directly target NTB’s main commodities, indirect impacts are inevitable. Adjustments in global supply may redirect investment flows toward commodities perceived as more promising, such as gold and tin. For NTB, this trend could present an opportunity. Gold remains a strategic regional commodity, and price stability—or even appreciation—could strengthen regional revenues through taxes, levies, and revenue-sharing mechanisms. However, such opportunities can only be fully realized if on-the-ground governance is effective, adaptive, and responsive.

At the same time, the government has set ambitious targets for non-tax state revenue (PNBP) from the mining sector in 2026. The shift toward optimizing revenue based on prices rather than solely on production volume reflects a commendable change in policy orientation. Nevertheless, this approach demands stronger oversight and higher levels of compliance with RKAB provisions. For regional governments, including NTB, this translates into the need to reinforce guidance and supervision functions (pembinaan dan pengawasan). Good mining practices must be consistently enforced without compromising environmental protection and social safeguards.

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This challenge is compounded by the implementation of a new organizational structure (SOTK), which has resulted in the dissolution of the ESDM branch office on Sumbawa Island—an area with the highest concentration of mining activities in NTB. Without adequate transitional mechanisms and strengthened technical presence in the field, efforts to optimize PNBP risk outpacing supervisory effectiveness. In such circumstances, fiscal objectives and sustainability goals may inadvertently undermine one another.

Further complications arise when strict policies are not matched by regulatory certainty in terms of timing and process. Delays in the approval of the 2026 RKAB provide a clear illustration. At the national level, the experience of PT Vale Indonesia Tbk demonstrates how RKAB uncertainty can disrupt production planning and investment decisions, even when temporary production relaxations are granted. At the regional level, the consequences are far more extensive. RKAB delays affect not only mining companies but also workers, local contractors, service providers, and supporting micro, small, and medium enterprises. When operations are stalled, purchasing power in communities surrounding mining areas inevitably declines.

For NTB, this situation underscores the importance of meaningful coordination between central and regional governments in the RKAB process. Such coordination must go beyond administrative procedures. Early and transparent exchanges of technical, environmental, and social data are essential to ensure that production discipline does not translate into business uncertainty at the local level. Certainty regarding the timing of RKAB approvals is just as critical as the substance of production control itself.

More broadly, production control policies should serve as a catalyst for regional economic transformation. NTB cannot rely indefinitely on natural resource extraction. Realistic downstream development, the strengthening of non-mining sectors, and the integration of community empowerment programs—such as Desa Berdaya initiatives and local value-added enhancement—must become integral components of mining companies’ work plans, rather than mere formalities within RKAB documents.

Ultimately, the success of mining policy in 2026 will be measured by the ability of central and regional governments to move in tandem. For NTB, the challenge lies not only in safeguarding the mining sector’s contribution to revenue and employment, but also in ensuring that national policies are translated fairly and operationally at the local level. Production discipline without regulatory certainty risks weakening regional economies, while business certainty without effective production control undermines long-term national interests. It is at this point of balance that the mining sector can truly function as an engine of sustainable development—not only for NTB, but for Indonesia as a whole.

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Editor: Tyson Michael Burnett.
This article has been translated. See original.