KOMPAS.com — Illegal coal mining in the Indonesian Capital City (IKN) and the Bukit Soeharto Forest Park (Tahura) has uncovered a major scandal at the heart of a national strategic project.
An operation conducted by the National Police’s Criminal Investigation Agency (Bareskrim Polri) uncovered unlicensed mining practices that had been ongoing since 2016 and were estimated to have caused state losses of up to Rp 5.7 trillion, consisting of Rp 3.5 trillion in losses due to coal depletion and Rp 2.2 trillion in forest damage.
During the operation, Bareskrim confiscated 351 containers of illegal coal, heavy equipment and arrested three suspects. The perpetrators’ modus operandi was to use forged documents from companies such as PT MMJ and PT BMJ to circumvent the distribution process.
The illegal coal was collected in a stockroom or warehouse, packed in sacks, and then shipped by sea in containers from the Kariangau Terminal (KKT) Port in Balikpapan to Tanjung Perak Port in Surabaya.
The perpetrators used documents belonging to companies that had Production Business Permits (IUP) to make it appear as if the coal they were sending came from legal mines.
The Publish What You Pay (PWYP) Indonesia Coalition believes this case is not simply a violation of the law, but reflects a systemic failure in the oversight of the mineral and coal mining (minerba) sector.
PWYP Indonesia researcher, Adzkia Farirahman (Azil), stated that the illegal mining activities that have been going on for almost a decade in a national priority area demonstrate a paralysis in oversight.
“How is it possible that illegal mining could operate for so long in a national priority area like the new capital city without early detection?” Azil said in a statement on Tuesday (July 22, 2025).
He also called for a thorough investigation of all actors involved, from miners, transportation service providers, shipping agents, permit-holding companies, port managers, and relevant officials.
Azil also highlighted the need for a serious evaluation by the Ministry of Energy and Mineral Resources of the governance of the mineral and coal sector, particularly aspects of oversight and early detection systems. Furthermore, the fact that these activities took place in a conservation area raises significant questions about the possibility of negligence.
“Illegal mining in conservation areas like the Bukit Soeharto Forest Park not only harms the state, but also accelerates environmental degradation, increases carbon emissions, and hinders the sustainable energy transition,” he stressed.
PWYP also highlighted the weak role of the Illegal Mining Task Force established by the National Capital City Authority and law enforcement officials on September 5, 2023.
Although this task force is tasked with preventing illegal mining activities in the National Capital City area, which is billed as a green city with low carbon emissions, it believes it has not been effective in detecting or stopping large-scale illegal operations like the one recently uncovered.
Therefore, he urged a thorough audit of all IPs around the National Capital City and strict sanctions against companies involved in document falsification.
He also emphasized the importance of strengthening digital monitoring systems, complemented by field verification and community involvement in monitoring.
Source: Kompas