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Indonesian Parliament Supports Comprehensive Review of Martabe Gold Mine Concession

by Editor Asiatoday
December 16, 2025
in News
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Indonesian Parliament Supports Comprehensive Review of Martabe Gold Mine Concession

FILE PHOTO: Martabe gold mine in Sumatra.

ASIATODAY.ID, JAKARTA — The Indonesian Parliament has expressed its support for a comprehensive evaluation of the Martabe gold mine concession following the recent flash floods in Sumatra.

Member of the House of Representatives’ Commission XII, Ateng Sutisna, emphasized that accountability in mining concession management must be strengthened, particularly in areas closely linked to environmental protection.

The statement was delivered after Commission XII conducted a working visit to PT Agincourt Resources, the operator of the Martabe Gold Mine, prior to the disaster. During the visit, lawmakers reminded the company that its responsibilities extend beyond active mining areas to include the entire concession, whether exploited or not.

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“Out of approximately 130,000 hectares of PT Agincourt’s concession granted since 2008, only about 600 hectares have been developed. While the mining site differs from the river areas affected by the flash floods, all of them fall within the same Martabe gold mine concession,” Ateng said in a written statement quoted on Tuesday, December 16, 2025.

He stressed that rivers which overflowed and triggered the flash floods are located within the company’s concession area. Therefore, the company retains an obligation to safeguard the environmental functions of the concession, even in zones not designated for mining activities.

Ateng also highlighted concerns over illegal logging detected at several points within the Martabe gold mine concession. Although such activities were carried out by external parties, he noted that insufficient supervision could exacerbate environmental degradation and increase disaster risks.

“Mining operations may not be located along the affected river flows, but those rivers are within the concession area. Indirectly, the company still bears responsibility for preventing illegal logging and forest destruction,” he said.

In this context, Ateng voiced support for the decision by the Environmental Law Enforcement Unit of the Ministry of Environment and Forestry (KLHK) to temporarily suspend PT Agincourt Resources’ operations pending the completion of a comprehensive environmental evaluation.

He described the move as necessary to strengthen environmental governance and formulate long-term solutions.

At the same time, Ateng acknowledged PT Agincourt’s decision to halt operations starting December 6 and commended the company’s involvement in disaster response efforts on the ground.

“A swift response deserves appreciation. However, going forward, monitoring systems and environmental protection across the Martabe gold mine concession must be reinforced to prevent similar incidents from occurring,” he concluded.

Meanwhile, the Ministry of Energy and Mineral Resources (ESDM) has decided to delay the public announcement of its operational evaluation of the Martabe gold mine. The decision was taken due to the ongoing emergency response to flash floods and landslides across several districts in North Sumatra.

The move has drawn public attention, as PT Agincourt Resources’ mining activities have recently come under heightened scrutiny. Critics argue that mining operations in the upper reaches of the Batang Toru River Basin (DAS Batang Toru) may have contributed to environmental degradation and increased disaster risks.

Director General of Law Enforcement at ESDM, Rilke Jeffri Huwae, confirmed that his office is conducting a comprehensive review of the Martabe gold mine’s operations, including an assessment of the company’s compliance with good mining practice (GMP) principles.

“We have conducted technical assessments, including reviews of watershed conditions, the distance between mining sites and rivers, and the potential environmental impacts. However, this remains part of an ongoing law enforcement process. At this stage, the government is prioritizing humanitarian response efforts,” Jeffri said at the BPH Migas Office, Monday, December 15, 2025.

Earlier, Deputy Minister of ESDM Yuliot Tanjung revealed that the Directorate of Environmental Engineering under the Directorate General of Mineral and Coal is actively involved in an environmental audit led by the Ministry of Environment (KLH). The audit focuses on mining practices in disaster-affected areas considered to carry high ecological risk.

“Environmental engineering teams from ESDM and KLH are conducting on-site inspections to assess how mining operations are managed in disaster-prone zones,” Yuliot said on Friday, December 12, 2025.

He also confirmed that operations at the Martabe Gold Mine—part of the business group of PT United Tractors Tbk (UNTR)—have been temporarily suspended by the Ministry of Environment pending the completion of the environmental governance audit.

As evaluations and audits continue, criticism toward PT Agincourt Resources has intensified. Several groups argue that mining activities in the upstream Batang Toru watershed could disrupt ecological balance, accelerate land degradation, and heighten the risk of flash floods and landslides.

These concerns were reinforced by a direct inspection conducted by the Minister of Environment and Head of the Environmental Control Agency (BPLH), Hanif Faisol Nurofiq, who surveyed the upper Batang Toru watershed and Garoga areas via aerial and ground inspections.

The inspection aimed to verify the causes of the disaster and assess the extent to which industrial activities may have contributed to heightened environmental risks.

During the visit, Minister Hanif inspected several companies operating in high-risk zones, including PT Agincourt Resources, PT Perkebunan Nusantara III (PTPN III), and PT North Sumatra Hydro Energy (NSHE), the developer of the Batang Toru hydropower project.

The delay in announcing ESDM’s evaluation results has prompted calls for transparency and firm government action. Public stakeholders argue that if violations of sustainable mining principles are proven, PT Agincourt Resources must be held accountable for any environmental impacts.

Observers stress that the flash floods, which caused significant damage to residents’ livelihoods, should not be viewed solely as natural disasters, but must also be examined in relation to industrial activities operating in environmentally sensitive regions.

As of now, the cross-ministerial audit and evaluation process remains ongoing. (AT Network)

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Tags: Indonesia DisasterMartabe Gold MiningParliament Indonesia
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