Task Force Revokes PT KEL’s 3,500-Hectare Gold Mining Permit
Gold mining operations by PT KEL in Nabire, Central Papua, have been halted after the Forest Area Enforcement Task Force (Satgas PKH) revoked the company’s mining business permit. Announced on Friday (23 October 2026), the decision covers 3,500 hectares, following findings that the company had mined illegally both within and beyond its permitted area.
Attorney General ST Burhanuddin, who serves as Deputy Chair I of the Satgas PKH Steering Committee, said the revocation followed instructions from Defence Minister Sjafrie Sjamsoeddin, the committee’s chair. The decision is set out in Investment Minister/Head of the Investment Coordinating Board (BKPM) Decree No. 20261012-01-0001 of 2026.
Burhanuddin provided details of the decision in a written statement on Friday (23 October 2026).
“The revocation of the mining business permit is set out in Investment Minister/Head of the Investment Coordinating Board (BKPM) Decree No. 20261012-01-0001 of 2026, covering a total area of 3,500 hectares,” Burhanuddin said.
A field verification by the joint Satgas PKH team found that PT KEL was operating without valid approval to use forest areas (PPKH). The area used without approval totalled 275.9025 hectares, both within and outside the company’s mining business licence area (WIUP).
Burhanuddin detailed the area used without authorisation in his statement.
“The company was operating without the required approval to use forest areas (PPKH), covering a total of 275.9025 hectares (comprising 170.4459 hectares within the WIUP and 105.4566 hectares outside it),” Burhanuddin said.
In addition to the forest-use permit violations, PT KEL was said to have failed to provide the required reclamation guarantee funds to address environmental damage. The company also failed to carry out reclamation in accordance with applicable regulations.
The revocation is based on Article 119(a) of Law No. 4 of 2009 on Mineral and Coal Mining, as amended. The provision allows a business permit to be revoked if its holder fails to meet obligations set out in the permit or in legislation.
Following the decision, PT KEL is no longer permitted to conduct mining or market its output. The area formerly used for the company’s mining operations has also been returned to the state.
Burhanuddin stressed that the revocation applies to both production and the sale of the company’s mined output.
“With its mining business permit revoked, PT KEL is strictly prohibited from mining or marketing or selling its output. The entire area formerly used for the company’s mining operations has now reverted to state ownership,” Burhanuddin said.
Although its permit has been revoked, PT KEL still has outstanding obligations. The company must remedy environmental damage, settle unpaid taxes and royalties owed to the state, and pay severance entitlements to its former employees.
The enforcement action also refers to Article 33(3) of the 1945 Constitution, which provides that the state controls natural resources for the people’s prosperity. The government plans to transfer management of the former mining area to a state-owned enterprise through the applicable licensing process, while taking account of environmental sustainability and the rights of local Indigenous communities.
Burhanuddin said natural resource management in Papua must benefit local communities and safeguard environmental sustainability.
“Natural resource management in Papua must deliver tangible, fair and sustainable benefits for the people of Papua in particular, and all Indonesians more broadly,” Burhanuddin said.
The enforcement operation in Nabire was also attended by Satgas PKH Steering Committee Deputy Chair II and Indonesian Military Commander General Agus Subiyanto, Deputy Chair III and National Police Chief General Suyudi Ario Seto, and officials from the task force’s 12 participating ministries and agencies.