Alarming: ESDM Reports Rp 857 Billion Loss from 7 Illegal Mining Operations

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) is investigating seven illegal mining cases with potential state losses amounting to Rp 857.55 billion. The government is currently processing these cases through investigation, inquiry, and prosecution stages before referral to the Attorney General’s Office. ESDM spokesperson Dwi Anggia stated that the illegal mining activities are spread across several major provinces in Indonesia, including Kalimantan, Java, Sumatra, and the Bangka Belitung Islands. ‘Currently, the ESDM’s Law Enforcement Directorate is handling seven illegal mining cases, with potential losses totalling Rp 857.55 billion. It’s staggering – this is the state’s potential loss from illegal mining activities,’ she said in an Instagram post from the official @kesdm account on Thursday, May 28, 2026. The cases fall under two main categories of violations: operations conducted without any permits, and companies mining outside the boundaries of their granted Exploration and Mining Business Licences (IUP). ‘One category is illegal mining without any IUP, while another involves companies with an IUP but operating outside the permitted area,’ she explained. Penalties are also enforced against licensed operators found violating operational procedures. The government has prepared a tiered sanction system, ranging from administrative warnings to licence revocation, to serve as a deterrent. ‘For companies with existing licences that fail to comply with operational procedures, administrative penalties will be imposed, up to and including licence revocation,’ she concluded.