Mining Permits Tightened as Bahlil Makes Reclamation a Condition of Operations
Jakarta (ANTARA) – Compliance with reclamation obligations will determine whether mining operations can continue. Energy and Mineral Resources Minister Bahlil Lahadalia said companies must bear the cost of environmental restoration as part of their responsibility for managing Indonesia’s natural resources.
The government has linked production approval to the fulfilment of reclamation guarantees and post-mining obligations. The tighter requirements are intended to ensure mining activities do not leave nearby residents with the burden of environmental damage.
“Companies extracting Indonesia’s natural resources must take responsibility for the environment. The minerals must not be taken away while environmental damage and abandoned mine pits are left for local communities,” Bahlil said in a statement in Jakarta on Thursday, 29 October 2026.
He said enforcement action was taken in September 2025, when operations were temporarily suspended at 190 holders of mining business permits (IUPs). The government’s review covered reclamation guarantees and compliance with Work Plans and Budgets (RKAB).
The measure makes environmental responsibility a key part of mining oversight. Companies’ ability to produce minerals and coal must go hand in hand with their obligations to restore land.
Bahlil also directed that mining activities in unauthorised forest areas be brought under control. Reclamation oversight is part of the wider effort to ensure companies remain responsible throughout their mining operations.
Alongside environmental concerns, the government wants more of mining’s economic benefits to reach communities in producing areas. One way to achieve this is by expanding opportunities for qualified local mining-services companies.
“I want local businesspeople to have opportunities in the mining industry too. Mining must not take place in a region while all the work and economic benefits go only to companies from outside that region,” he said.
Under Energy and Mineral Resources Ministerial Decree No. 365 of 2026, mining permit holders are being directed to prioritise service companies from the districts or municipalities around their operating areas.
Local businesses are expected to stimulate supporting services, including transport, vehicle repair workshops and accommodation. However, regional contractors must still meet licensing, competency, safety and technical standards.
The government’s approach to reforming the mining sector rests on two responsibilities: restoring the environment and widening local economic benefits. Its implementation will depend on companies’ compliance and consistent government oversight.