ASIATODAY.ID, JAKARTA — Indonesia’s nickel governance is once again under intense scrutiny after the House of Representatives (DPR) uncovered alarming weaknesses in state oversight of on-land mineral sales.
The issue has gained momentum as integrated industrial hubs such as IWIP (Indonesia Weda Bay Industrial Park) and BWIP (Weda Bay Industrial Park Airport) face growing public criticism over transparency and regulatory compliance.
During a Hearing Session with the Ministry of Energy and Mineral Resources (ESDM)’s Directorate General of Minerals and Coal (Minerba) at the Nusantara I Building on Monday, December 8, 2025, Deputy Chair of Commission XII, Bambang Haryadi, revealed that on-land ore transactions are taking place without any state presence, from weighing to quantity verification.
“We found several weighing stations operated entirely by the companies. The state is not present in the verification process,” Bambang emphasized.
Commission XII had previously conducted a field inspection at BWIP and discovered that all weighing equipment was controlled solely by the companies, with no government or independent operators involved.
According to Bambang, this finding has already been reported directly to President Prabowo Subianto due to its potential to cause significant losses to state revenue.
No Tracking System: State Has No Record of Ore Flow
Bambang stressed that Minerba has yet to establish a tracking-based mechanism for on-land mineral sales, leaving the movement of ore from mine sites to smelters—particularly within IWIP and BWIP—unrecorded and unmonitored.
“Sales via sea are well controlled—there are harbormasters and clear procedures. But land routes operate like a lawless zone,” he stated.
He warned that integrated industrial zones like IWIP and BWIP can transport ore directly from their affiliated mines without undergoing state control, creating a major loophole in the nation’s mineral trading system.
Surveyors Under Suspicion: Accuracy and Integrity Questioned
Beyond the regulatory vacuum on land routes, Commission XII also highlighted serious concerns over the credibility and consistency of surveyor services. Several mining companies reported major discrepancies between survey results from different surveyors—opening the door to potential manipulation.
“When surveyors operate without supervision and are monitored only by accreditation bodies, this enables room for misconduct. We have received numerous complaints,” Bambang said.
He added that the DPR is tracking allegations of surveyors engaging in legal maneuvering to influence results, and noted a suspicious case involving a surveyor that issued “dozens of permits” in an unusually short timeframe—suggesting the dominance of certain actors within the national surveyor ecosystem.
14 Surveyors at Risk of Losing Their Licenses
Bambang urged the Ministry of Energy and Mineral Resources to conduct a full evaluation of the 14 surveyor companies currently operating in the mineral sector. If any violations or unprofessional practices are identified, he demanded immediate license revocation.
“If they are not proper, use illegal methods, or refuse to compete professionally, their licenses must be revoked,” he insisted.
According to Bambang, mineral governance must remain firmly under state control. Without decisive reform—particularly for on-land ore transfers in major hubs like IWIP and BWIP—loopholes will continue to be exploited, threatening state non-tax revenue (PNBP) and disrupting fair pricing in the industry.
IWIP Responds: ‘Company Not Involved in Illegal Activities’
Amid the rising scrutiny, IWIP management issued a clarification, stating the company is not connected to any unlawful activities involving mineral transport or handling. IWIP asserted that its operations comply fully with aviation regulations, industrial security standards, and all directives from the relevant authorities.
Confiscated mineral samples recently seized at IWIP’s special airport are currently under the supervision of Aviation Security (AvSec) pending document verification.
Smuggling Attempt at IWIP Airport Foiled by Joint Task Force
The clarification follows an incident on Friday, December 5, 2025, when the Joint Task Force at IWIP’s Special Airport intercepted a suspected smuggling attempt involving mineral materials carried by a Chinese national. The individual transported five packages of mixed nickel powder and four packages of pure nickel powder aboard a Super Air Jet flight on the Weda Bay–Manado route.
AvSec officers detected the materials through an X-Ray check conducted before boarding, prompting immediate confiscation and investigation.
With weak oversight of on-land ore movement, questionable surveyor practices, and tightening security concerns at special industrial airports, the Parliament insists that comprehensive reform is urgent to restore state control over Indonesia’s rapidly expanding nickel sector. (AT Network)
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