Task Force Revokes PT KEL’s Mining Licence for Illegal Gold Mining in Papua Forest
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This article was translated by AI. Read the original article on Kompas.com. See Original
JAKARTA, KOMPAS.com - The Forest Area Law Enforcement Task Force (Satgas PKH) officially revoked the mining business license (IUP) of PT Kristalin Eka Lestari (KEL) in Nabire, Central Papua, on Thursday (22/10/2026).
The revocation of the IUP is documented in the Decision of the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Number 20261012-01-0001 of 2026, covering a total area of 3,500 hectares.
According to field verification conducted by a joint team of the Satgas PKH, it was proven that PT KEL engaged in illegal gold mining activities both within and outside the Mining Business License Area (WIUP).
“The company operated without obtaining Forest Area Utilization Approval (PPKH) for a total area of 275.9025 hectares, consisting of 170.4459 hectares within the WIUP and 105.4566 hectares outside the WIUP,” said Attorney General ST Burhanuddin, who is also the Deputy Chair I of the Satgas PKH steering committee, as quoted in a press release on Friday (23/10/2026).
Additionally, PT KEL was cited for failing to deposit reclamation guarantees and carrying out reclamation to restore areas affected by mining activities.
Burhanuddin stated that the license revocation was based on Article 119 letter a of Law Number 4 of 2009 regarding Mineral and Coal Mining and its amendments.
This provision regulates license revocation if the license holder fails to meet established obligations.
“With the revocation of the IUP, PT KEL is strictly prohibited from conducting mining activities or marketing or selling mining products. All areas previously operated by the company are now returned to state ownership,” he asserted.
Despite the revocation, the company is still required to restore the environment, settle tax and royalty arrears, and fulfill the rights of former workers, including severance pay.
Burhanuddin added that the government will take over the management of these natural resources through state-owned enterprises (BUMN), in accordance with applicable licensing mechanisms and regulations.
He emphasized that the management of natural resources in Papua should provide benefits for the local community while ensuring environmental protection, fulfilling state obligations, and respecting the rights of indigenous peoples.
“The management of natural wealth in Papua must be able to deliver tangible, just, and sustainable benefits for the Papuan community specifically, and for all Indonesian citizens in general,” he concluded.
The license revocation event was also attended by the Deputy Chair II of the Satgas PKH, who is also TNI Commander General Agus Subiyanto, Deputy Chair III of the Satgas PKH, who is also National Police Chief General Suyudi Ario Seto, as well as the Satgas PKH implementers from 12 ministries and agencies.