Jakarta, September 24, 2025 – The Publish What You Pay (PWYP) Indonesia coalition stated that the Ministry of Energy and Mineral Resources’ (MEMR) decision to suspend the operations of 190 mineral and coal mining companies for failing to comply with the obligation to place Reclamation Guarantees (Jamrek) is insufficient, and must be followed by more concrete measures. The suspension of operations for these 190 companies was stipulated in the letter issued by the Directorate General of Mineral and Coal, MEMR, Number T-1533/MB.07/DJB.T/2025 dated September 18, 2025.
PWYP Indonesia researcher, Adzkia Farirahman (Azil), urged MEMR not to stop at merely suspending the 190 companies.
“If they remain non-compliant, revoke their permits permanently and pursue criminal charges, not just administrative sanctions,” Azil asserted.
The government must also ensure that other mining companies have placed their reclamation guarantees (Jamrek) on time. Even if guarantees have been placed, MEMR needs to verify whether the amounts correspond with the actual reclamation costs, in order to avoid shortfalls that could burden the state and communities in the future.
Azil further highlighted another often-neglected obligation: the placement of Post-Mining Guarantees. Based on MEMR data, as of June 2025, 30 percent of the total Mining Business Permit (IUP) holders (4,250 IUPs) had not deposited or placed reclamation guarantees. Moreover, 53 percent had not deposited or placed post-mining guarantees.
A comprehensive evaluation of these obligations must be carried out for all IUP holders to prevent long-term environmental degradation.
“We emphasize that even if companies have placed reclamation and post-mining guarantees, it does not absolve them of their responsibility to directly carry out reclamation and post-mining activities,” Azil stressed.
Azil also warned that suspension should not become a loophole for mining companies to evade their obligations. Instead of depositing reclamation and post-mining guarantees or implementing costly reclamation and post-mining activities, some companies might prefer being suspended or having their permits revoked as an escape from accountability.
Furthermore, the value of reclamation and post-mining guarantees placed by companies must be disclosed transparently to the public. Such transparency is crucial to enable civil society oversight and ensure accountability, in line with the principles of the Extractive Industries Transparency Initiative (EITI) adopted by Indonesia.
Lessons from Bengkulu Case
The recent revelation by the Bengkulu High Prosecutor’s Office of a Rp 1 billion bribery case involving a coal mining entrepreneur and a MEMR inspector demonstrates the persistent weaknesses in reclamation and post-mining governance. These include low compliance with the placement of reclamation and post-mining guarantees, alleged manipulation of data and documents in RKAB submissions, and weak monitoring and law enforcement.
“It is deeply regrettable if government officials entrusted with oversight instead engage in unlawful transactional practices—especially in matters related to land rehabilitation, ecosystem restoration, and environmental recovery,” Azil noted.
This case should serve as a wake-up call for the government, underscoring the urgency of law enforcement and company compliance. Azil added that the case should act as an alarm for strengthening reclamation and post-mining governance, ensuring permit holder compliance, enhancing monitoring, and enforcing sanctions.
Additional Recommendations from PWYP Indonesia
- Integrate reclamation and post-mining guarantee data into national transparency platforms such as EITI Indonesia, enabling real-time public access.
- Involve civil society and affected communities in verification and monitoring of reclamation and post-mining activities, including through independent audits.
- Strengthen criminal sanctions for companies deliberately evading obligations, in line with Law No. 3/2020 on Mineral and Coal Mining.
- Conduct regular evaluations of all active IUPs to ensure compliance, prioritizing environmentally vulnerable regions such as Kalimantan, Sumatra, Sulawesi, Papua, and others.
Contact Person:
Adzkia Farirahman (Azil), Researcher at PWYP Indonesia
farirahman@pwypindonesia.org
About PWYP Indonesia
Publish What You Pay (PWYP) Indonesia is a civil society coalition advocating for democratic and inclusive governance of the energy and natural resource sectors to advance social-ecological justice. Established in 2007 and legally registered in 2012 as the Extractive Resources Transparency Foundation (Yayasan Transparansi Sumber Daya Ekstraktif), with registration number AHU-AH.01.06-0032012 (Updated). PWYP Indonesia consists of 31 civil society organizations at the national and local levels, working to represent the public interest and strengthen civil society capacity to sustainably contribute to the governance of energy and natural resources at the national, local, and global levels.