ASIATODAY.ID, JAKARTA – Indonesia has delivered a heavy blow to rogue mining operators with a new policy that slaps massive administrative fines on companies extracting minerals inside forest areas.
Under Ministerial Decree No. 391.K/MB.01/MEM.B/2025, Minister of Energy and Mineral Resources Bahlil Lahadalia has set penalties reaching an astonishing IDR 6.5 billion (around US$400,000) per hectare for violations involving nickel mining.
Signed on December 1, 2025, the regulation enforces provisions under Government Regulation No. 45/2025 and signals the government’s escalating crackdown on illegal and non-compliant mining activities that have long ravaged Indonesia’s forests.
The fine structure is based on the recommendations of the Forest Area Enforcement Task Force (Satgas PKH) and a directive issued by the Deputy Attorney General for Special Crimes on November 24, 2025. It represents one of the most aggressive administrative enforcement tools the Indonesian government has ever applied in the mineral sector.
Staggering Penalties for Key Mining Commodities
The decree imposes different fine levels depending on the commodity:
Nickel: Rp6.5 billion (US$400,000) per hectare
Bauxite: Rp1.7 billion (US$105,000) per hectare
Tin: Rp1.2 billion (US$74,000) per hectare
Coal: Rp354 million (US$22,000) per hectare
All fines will be collected by Satgas PKH and recorded as non-tax state revenue (PNBP) under the energy and mineral resources sector.
Bahlil’s Warning Shot: “Break the Rules, I Will Shut You Down”
During a visit to hydrometeorological disaster victims in Agam Regency, West Sumatra, Bahlil issued a stern warning to the mining industry.
“If they violate the rules and operate irresponsibly, I will not hesitate to act. In mining, if anyone operates outside the regulations and proper standards, I will shut them down,” he declared.
His statement underscores the government’s determination to end destructive mining practices that put forests, communities, and state revenues at risk.
A Powerful Shock Therapy for Environmental Offenders
The new regulation is expected to act as a shock therapy for companies that continue exploiting forest areas without proper permits or environmental safeguards.
The government aims to strengthen law enforcement, ensure transparency in resource management, and curb ongoing ecological damage caused by irresponsible mining.
This decree takes effect immediately and now serves as the legal foundation for strict on-the-ground enforcement by the task force. (AT Network)
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