Indonesia’s Ministry of Energy and Mineral Resources (ESDM) asserts that Work Plans and Budgets (RKAB) are key instruments for the state to maintain control over the country’s critical mineral resources. The RKAB, required for mining operations, allows the government to monitor and direct mineral extraction activities. Officials emphasize this control is vital for maximizing economic benefits from these resources and ensuring responsible mining practices. The ministry highlighted that RKAB approval is contingent upon alignment with national interests, including domestic processing and value-added industries. This approach aims to move Indonesia beyond simply exporting raw materials. The government intends to leverage RKABs to encourage investment in downstream processing facilities. This strategy is part of a broader effort to strengthen state revenue and promote industrial development within the mining sector.
