BETAHITA.ID – Illegal coal mining operations in the Indonesian Capital City (IKN) and the Bukit Soeharto Forest Park (Tahura) conservation area in East Kalimantan, which have been ongoing for almost a decade since 2016, are evidence of the failure of the mineral and coal mining (minerba) sector oversight system, according to the Indonesian Publish What You Pay (PWYP) Coalition.
In a press release, PWYP stated that the disclosure of this illegal mining case by the National Police’s Criminal Investigation Agency (Bareskrim Polri) is clear evidence of significant gaps in mineral and coal governance, resulting in state losses of up to IDR 5.7 trillion, including IDR 3.5 trillion in coal depletion and IDR 2.2 trillion in forest destruction. Therefore, PWYP Indonesia urges the government to take responsibility and immediately implement reforms to improve mining governance, particularly in the area of oversight, to prevent illegal practices that damage the environment and deplete state resources.
“This case is not just an incident, but rather an indication of the failure of supervision in the mineral and coal mining sector. How could illegal mining have operated for so long in a national priority area like the new capital city without early detection?” said Adzkia Farirahman, a researcher at PWYP Indonesia, in a written statement on July 20, 2025.
“We urge a thorough investigation into the strong suspicion of involvement of all parties involved, including miners, transportation service providers, shipping agents, licensed companies, port operators, and other relevant officials,” she added.
This case was uncovered through an operation by the National Police’s Criminal Investigation Agency (Bareskrim Polri), which confiscated 351 containers of illegal coal and heavy equipment, and arrested three suspects who used forged documents from companies such as PT MMJ and PT BMJ to smuggle the coal into the port. The alleged method involved first collecting the illegal coal in a stockroom or warehouse, then packing it in sacks.
The coal was then distributed by sea in containers from the East Kalimantan (Kaltim) Kariangau Terminal (KKT) Port in Balikpapan to Tanjung Perak Port in Surabaya. To deceive officers, the perpetrators used official documents from companies holding Production Business Permits (IUP) during the shipping process at the Balikpapan terminal. These documents were used to make the coal appear to originate from legal mining.
On the same occasion, Buyung Marajo, Coordinator of Working Group 30 East Kalimantan, a member of the Samarinda-based PWYP Indonesia coalition, said that while the uncovering of this illegal mining case in the capital city area is commendable, it is not the only case. There is still a significant amount of coal circulation and other illegal mining activity in East Kalimantan that remains untouched.
“It’s not just the three suspects involved; we must thoroughly investigate who else is receiving and benefiting from this crime,” he said.
Buyung believes the illegal mining case in the capital city (IKN) also demonstrates the weakness of oversight and law enforcement in East Kalimantan when dealing with mining corporations that violate the law, especially illegal ones. Buyung advised the East Kalimantan Regional Police (Polda), the regional government, the IKN Authority, and other law enforcement agencies to avoid public suspicion, leading the new National Police Criminal Investigation Agency (Bareskrim Polri) to uncover the problem.
According to Buyung, the statement by the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, that the Ministry’s supervision only covers licensed mines is unimportant and unnecessary, and demonstrates the minister’s inability to mitigate similar incidents in other regions.
“It’s important to note that this case also involves official documents from companies holding IUPs as one of the shipping requirements. These documents are used to pretend the coal originates from official mines or IUP holders, when in fact it originates from illegal mining activities,” he said.
Azil urged the Ministry of Energy and Mineral Resources to immediately evaluate and improve the governance of mineral and coal mining, particularly in terms of supervision, including early detection.
“Considering that these illegal mining activities are suspected to have occurred since 2016 in conservation areas, this raises a big question: is this another form of ‘neglect’?” Azil asked.
Azil also stated that illegal mining in conservation areas such as the Bukit Soeharto Forest Park not only harms state finances but also accelerates environmental degradation, increases carbon emissions, and hinders the sustainable energy transition. Therefore, Azil urged a comprehensive audit of all mining permits around the capital city, including strict sanctions for companies found to be involved in document falsification.
“Strengthening the digital monitoring system in synergy with field verification. Also, strengthen transparency and community involvement in oversight,” he said.
Furthermore, he highlighted the weak role of the Illegal Mining Task Force (Satgas) established by the National Capital City Authority (OIKN) and law enforcement officials on September 5, 2023. Its mandate is to strengthen the prevention and control of illegal mining in the capital city, in line with the vision of a low-carbon, carbon-neutral forest city by 2045. This includes developing reclamation and post-mining guidelines with support from universities.
However, despite operating for almost two years, the Task Force appears ineffective in detecting or stopping large-scale illegal operations like the one recently uncovered, which have been ongoing since 2016, even before the Task Force’s formation.
Buyung believes a thorough evaluation of the Task Force’s implementation, including interagency coordination and concrete outcomes, is necessary to avoid the impression that prevention efforts are merely formalities without real follow-up, while environmental damage in conservation areas like the Bukit Suharto Forest Park (Tahur Bukit Suharto) continues.
Source: Betahita