A gathering in the Arau Room of the East Kutai Regent’s Office in East Kalimantan on Monday, April 13, 2026, saw a number of coal entrepreneurs voice complaints over reductions in production volumes under the 2026 Work Plan and Budget (RKAB). They feared the policy by the Ministry of Energy and Mineral Resources would affect the sustainability of their operations. That morning, the East Kutai administration convened a key meeting to discuss how to address the potential wave of layoffs in one of Indonesia’s largest coal-producing regions.
Representatives from several coal mining permit holders attended, including Indexim Coalindo, Ganda Alam Makmur, Perkasa Inakakerta, Tawabu Mineral Resource, and Bayan Resources. These companies faced production cuts of 20 to 40 percent from last year’s allocation. Only Kaltim Prima Coal, a subsidiary of Bumi Resources (Bakrie Group), saw its quota fully approved at its proposed 54 million tons.
Some companies’ RKAB submissions were still under review at the Energy Ministry after earlier proposals were rejected. “There are document deficiencies that must be corrected,” said Tawabu Mineral Resource Operations Director Waskito Tanuwijoyo in Jakarta on Tuesday, April 14, 2026.
The prospect of mass layoffs looms over both companies and the East Kutai administration. According to the regency’s official website, Bayan Resources had furloughed 18 employees since March 2026. Tawabu sent home 12 workers between January and March. Other impacts included reductions in production fleets and contractors.
