APBI Highlights Rampant Illegal Mining in South Kalimantan

Illegal mining practices remain one of the biggest challenges in realising sustainable mining governance in Indonesia, including in South Kalimantan Province. This was revealed during a Road Show on South Kalimantan coal mining governance held by the Indonesian Coal Mining Association (APBI-ICMA) on Thursday (2/7). APBI highlighted the rampant illegal mining practices as a major challenge. Amid high coal production in South Kalimantan, APBI believes strengthening synergy between business actors and law enforcement officials is an important step to prevent violations in the mining sector. APBI-ICMA Executive Director Gita Mahyarani said South Kalimantan holds a strategic position in the national coal industry. From around 15 APBI member companies operating in the province, their production contribution reaches almost 70 per cent of the total coal production in South Kalimantan. “Therefore, we organised this activity not only for APBI members, but also for all business actors within the coal industry supply chain,” she said. According to Gita, one of the main issues discussed was strengthening good mining practice, especially in dealing with illegal mining activities which remain a common concern. “That is why we held discussions regarding the efforts that have been made by companies and how synergy with the police and law enforcement agencies in the energy and mineral resources sector can run sustainably,” she said. Apart from legal issues, Gita explained that APBI is also encouraging companies to start adapting to new industry challenges, one of which is through the electrification of mining operations. This step is considered capable of reducing operational costs while supporting carbon emission reduction efforts. “Fuel costs continue to rise, coupled with global geopolitical conditions. Therefore, we are starting to encourage electrification in the mining sector. It does require significant investment, but the future potential is very promising,” she explained. The forum also served as a discussion space to face the implementation of various new policies in the mining sector, including the planned implementation of the DSI scheme starting 1 January 2027. Business actors need to have a common understanding in order to adapt to regulatory changes that will be implemented by the government. “We want to map out the issues that still occur in the mining sector. Not only illegal mining, but also overlapping permits and various other aspects of law enforcement that still need attention,” she said. She appreciated the steps taken by the South Kalimantan Regional Police, which have handled hundreds of cases in the mining sector. “What is more important is how this process becomes a lesson and a preventive measure for all companies so that mining governance becomes better,” she stressed. Expert Staff for Government, Legal and Political Affairs, Adi Santoso, affirmed that the Provincial Government of South Kalimantan appreciates the roadshow and workshop held by APBI, as it is considered in line with the Governor’s vision and mission for sustainable and equitable economic growth.