Indonesian Political, Business & Finance News

Government Revokes PT Kristalin Eka Lestari’s Mining Permit in Nabire

| Source: ANTARA_ID Translated from Indonesian | Mining
Government Revokes PT Kristalin Eka Lestari’s Mining Permit in Nabire
Image: ANTARA_ID

Nabire (ANTARA) – The government has revoked the Mining Business Permit (IUP) of PT Kristalin Eka Lestari, covering an area of 3,500 hectares in Nabire Regency, Central Papua, after the company was found to have breached regulations governing the use of forest areas.

Attorney General Sanitiar Burhanuddin said in Nabire on Thursday that the permit was revoked under Investment and Downstreaming Ministerial Decree No. 20261012/01/001 of 2026, dated 12 October 2026. The minister also serves as head of the Investment Coordinating Board (BKPM).

“With the revocation of the IUP, control of the 3,500-hectare area reverts to the state,” he said at a press conference in Nabire with Defence Minister Sjafrie Sjamsoeddin, Indonesian Military (TNI) Commander General Agus Subiyanto and National Police Chief General Suyudi A.S.

He said the decision was based on an on-site verification by a joint team from the Forest Area Enforcement Task Force (Satgas PKH). The team found mining activity in a forest area without approval for the use of the forest area.

The company had also failed to meet its obligations to provide reclamation guarantees and carry out reclamation in accordance with applicable laws and regulations.

Burhanuddin said the revocation was based on Article 119(a) of Law No. 4/2009 on Mineral and Coal Mining, as amended, which provides for the revocation of a permit when its holder fails to fulfil its obligations.

Following the revocation, the company may no longer conduct mining activities under the cancelled IUP.

He stressed that the company must still settle its outstanding obligations, including environmental restoration, payment of taxes and royalties as required, and workers’ entitlements, including severance pay for former employees eligible to receive it.

He said the measure was part of the government’s efforts to enforce the law, improve natural resource governance and ensure that the country’s wealth is used to the greatest possible benefit of the people.

“The state must not allow natural wealth to be managed without oversight or compliance with the law, in disregard of environmental sustainability or the rights of the community,” he said.

The government hopes the enforcement action will ensure that natural resources in Central Papua are managed in accordance with the law, while protecting the environment and the rights of local communities.

Erich Folanda, director of operational control at the Attorney General’s Office Deputy Attorney General for Special Crimes, said on-site verification and clarification showed that PT Kristalin’s mining operations were located in a production forest area.

“The mining area belonging to PT Kristalin Eka Lestari does not yet have Forest Area Use Approval (PPKH),” Erich said.

In addition to lacking PPKH approval, the company had not provided reclamation and post-mining guarantees, while its Work Plan and Budget (RKAB) remained under review for potential sanctions in the mineral and coal sector.

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