South Sumatra Police Dismantle Illegal Mining Syndicate, Preventing Potential State Losses of Rp95.9 Billion

The South Sumatra Regional Police, through the Muara Enim Police, have successfully dismantled an illegal coal mining syndicate operating without permits in the Mining Business Permit area owned by PT Bukit Asam Tbk. During the law enforcement operation conducted on 8 and 10 July 2026 in Penyandingan Village, Tanjung Agung District, police not only arrested more than a dozen suspects but also prevented state financial leakage amounting to tens of billions of rupiah. A representative of PT Bukit Asam Tbk management, Taufan, detailed the massive impact of the natural resource theft had it not been promptly halted by the authorities. “The state revenue lost due to this illegal mining activity is approximately Rp95.9 billion. The estimated loss from royalties alone is Rp8.6 billion. So the state loss is not just from royalties, but also from other taxes and non-tax state revenue,” Taufan stated on Tuesday, 14 July 2026. The exposure of this illegal mining network began with public complaints reporting the high traffic of unlicensed coal transport vehicles in their area. Responding to eight police reports, Muara Enim Police Chief AKBP Hendri Syaputra instructed the Criminal Investigation Unit, led by AKP Muhamad Andrian, to take immediate action. The raid was conducted in two waves. On Wednesday, 8 July 2026, officers raided an illegal stockpile and arrested eight people. Two days later, on Friday, 10 July 2026, investigators expanded the operation to the Bangke River area and arrested three more suspects. A total of 11 suspects were detained, with interconnected roles ranging from business owners and foremen to heavy equipment operators, drivers, and truck attendants. In addition to the suspects, police seized large-scale evidence, including four heavy excavators, five Colt Diesel trucks carrying 52 tonnes of illegal coal, a motorcycle, 11 mobile phones, and four falsified travel documents. Police confirmed that the arrest of the 11 suspects is not the end of the case. The Muara Enim Police Chief stressed the commitment to pursue the masterminds behind this billion-rupiah illegal mining operation.