Overlapping Mining Permits and Illegal Mining Pose Law Enforcement Challenges for Indonesia's Extractive Sector

Law enforcement has emerged as a critical factor in maintaining proper governance of Indonesia’s mining sector and advancing the adoption of ethical mining practices throughout the country. Consistent law enforcement is necessary to ensure mining operations comply with regulations, protect the environment, and provide benefits to both communities and the state.

Wahyudi Akbari, Acting Director of Asset and Evidence Management at the Directorate General of Law Enforcement under the Ministry of Energy and Mineral Resources, stated that overlapping permit issues in the mining sector remain a significant obstacle to business operations and investment climate. This situation arises when multiple mining permits for the same commodity exist within a single jurisdiction.

“When a region already has a permit and then another identical permit is issued in that same area, that is not permitted. This can obstruct business operations and damage the investment climate,” Wahyudi said during the Indonesia Mining Outlook 2026 event in Jakarta on 4 March 2026.

Additionally, Wahyudi noted that illegal mining or mining without permits represents a serious challenge, as such activities not only cause environmental damage and trigger social conflict, but also potentially reduce state revenues from the mining sector.

“Illegal mining can result in reduced state revenue, environmental damage, and social conflict in surrounding mining areas,” he stated.

Wahyudi emphasised several key aspects that require attention, including corporate compliance with environmental obligations, social impacts on communities near mining operations, and contributions to state revenue through non-tax state revenue payments (PNBP).

Regarding environmental concerns, mining companies are required to comply with various regulations that have been reformed by the government. Adherence to environmental documentation and fulfilment of reclamation obligations serve as important indicators for law enforcement officials in assessing business performance.

From a social perspective, mining activities are also expected to generate positive impacts for surrounding communities, including improved access to education, healthcare, and living standards.