Delayed RKABs force temporary layoffs at West Kalimantan bauxite miners

By Cepi Setiadi

Delays in the approval of mining work plans and budgets (RKABs) have forced at least 17 bauxite mining permit holders in West Kalimantan to temporarily lay off workers, the Indonesian Bauxite Association (ABI) said on Thursday.

ABI Chairman Ronald Sulistyanto said thousands of workers employed by mining companies and contractors had been temporarily dismissed while companies awaited approvals from the Energy and Mineral Resources Ministry.

“I estimate there are around 17 companies affected because we do not have complete data, and companies are generally not open with each other regarding workforce reductions,” Ronald told Petromindo.com.

He said the affected companies typically produce between 1 million and 2 million metric tons of bauxite ore annually.

According to Ronald, around 25 to 30 bauxite mining permit holders have yet to secure RKAB approvals out of approximately 60 active bauxite mining permits valid through 2032.

“Of the 60 active IUPs, some are still valid but did not submit RKAB applications,” he said.

Read also : Govt temporarily suspends 141 mining firms over delayed RKAB submissions

Ronald said a bauxite miner with annual production capacity of 1 million to 2 million tons generally employs around 40 direct operational workers while relying on three to four contractors to support mining activities.

Each contractor may employ hundreds of workers, meaning a single mining operation could involve up to 500 workers in total, he added.

Based on those estimates, ABI believes more than 10,000 workers may have been affected by the delayed approvals.

The workers have been temporarily sent home while awaiting RKAB approvals so mining operations can resume, Ronald said.

He also criticized what he described as a lack of transparency from the ministry regarding this year’s bauxite production quota allocations.

“The ministry does not provide access to information on how much bauxite quota has been approved this year and going forward. So we can only make assumptions based on complaints from smelters about raw material shortages,” he said.

Ronald added that limited RKAB approvals had also disrupted domestic alumina refinery operations, citing PT Bintan Alumina Indonesia (BAI), which he said was operating at only around 60% of capacity because of limited ore supply.

“If their raw material needs were fully met, they would not be complaining about shortages,” he said.

Editing by Reiner Simanjuntak