Ahmad Luthfi Partners with KPK to Overhaul Mining Governance from Upstream to Downstream

Central Java Governor Ahmad Luthfi stated that the rock and mineral mining sector (MBLB) plays a crucial role in supporting infrastructure development and driving the regional economy. However, he emphasised that its governance must be overhauled to prevent legal issues, environmental damage, and potential regional revenue losses. The statement was made during a Coordination Meeting on the Follow-up to Mining Governance Reform with the Deputy for Coordination and Supervision (Korsup) team from the Corruption Eradication Commission (KPK) at the Governor’s Office in Central Java today. “The KPK will accompany us. I want full transparency so that no legal violations occur,” Luthfi said in a written statement on Friday (12/6/2026). According to Luthfi, the reform will be carried out from upstream to downstream, covering the licensing process, coordinate suitability, reclamation and post-mining obligations, and field supervision. He requested that all regulations and weak points in mining governance be mapped first, so that preventive and guidance measures can be strengthened before resorting to law enforcement. “Establish the regulations first, then identify the weaknesses. We want pre-emptive and preventive efforts to come first, with law enforcement as the last resort,” he stated. The Central Java Provincial Government recorded 505 active mining permits as of 4 June 2026, comprising 80 Rock Mining Permits (SIPB), 128 Exploration Mining Business Permits (IUP), 157 Production Operation IUPs, 105 extensions of Production Operation IUPs, and several other permits. Meanwhile, illegal mining remains a challenge, with 128 cases of illegal gold mining (PETI) recorded in 2025 and 49 cases up to May 2026. Data from the National Police Criminal Investigation Agency and the Central Java Police Special Criminal Investigation Directorate shows 13 enforcement actions in 2025 and 5 up to May 2026. Luthfi stressed that the governance reform is not intended to hinder investment, but rather to ensure that the supply of construction materials is met through legal, orderly, and environmentally responsible mining activities, particularly as Central Java requires large material supplies for strategic infrastructure projects such as the Jogja-Bawen, Semarang-Demak, and Klaten-Jogja toll roads. The provincial government has also revoked permits of non-compliant mining operators, including CV Raksanam Lokapala in Boyolali, PT Parama Miguno Bumi in Kendal, CV Wishnu Pratama in Sragen, and PT Dinar Batu Agung in Banyumas during the 2025-2026 period. The MBLB sector remains a pillar of the regional economy, contributing Rp 23.2 billion in opsen tax in 2025 and Rp 10.6 billion up to May 2026, while supporting 811 downstream companies with total investment of Rp 30.4 trillion and employing around 12,184 local workers.