Ecobiz.asia – The Publish What You Pay (PWYP) Indonesia Coalition has urged the Forest Area Enforcement Task Force (Satgas PKH) to ensure that enforcement against illegal mining in forest areas is accompanied by environmental restoration. The coalition warned that enforcement must not simply result in the collection of fines or the transfer of concession management to state-owned enterprises (SOEs).
PWYP called on the government to take action against all parties involved in illegal mining activities, from business operators to those allegedly facilitating such operations. The coalition also urged that enforcement processes be conducted transparently, with their outcomes made accessible to the public.
PWYP referred to national media reports published on 4 November 2026 concerning enforcement against a network of mining companies illegally operating in forest areas. According to these reports, the Attorney General’s Office had confirmed that nickel was among the commodities targeted by the enforcement operation.
However, PWYP stated that the list of companies, the size of the affected areas, and details of the alleged violations had not been publicly disclosed at the time its statement was issued. The coalition also called for clarification on whether mining concessions on Kabaena Island, which have been highlighted by civil society organization Satya Bumi over alleged deforestation, were included in the enforcement operation.
PWYP Indonesia National Coordinator Aryanto Nugroho said that the success of enforcement efforts must be measured by their contribution to environmental protection and the benefits of natural resource management for the people.
“Amid the climate crisis and accelerating deforestation, Indonesia’s nickel wealth as a critical mineral is increasingly vulnerable to becoming an arena for elite interests. Its presence must not be used to justify new extractivist practices, including under the pretext of National Strategic Projects (PSN) or critical mineral allocations. Therefore, every act of repossession must be absolutely oriented toward ecological restoration, not merely the takeover of assets or the transfer of concession management to SOEs,” Aryanto said, as quoted on Monday (9 November 2026).
PWYP criticized the implementation of enforcement measures under Presidential Regulation No. 5 of 2025 on Forest Area Enforcement. According to the coalition, the resolution of violations risks focusing solely on asset repossession and state revenue generation, without making environmental restoration a prerequisite.
The coalition cited the transfer of management of confiscated oil palm plantations to PT Agrinas as an example. PWYP warned that transferring control of these areas to SOEs must not create opportunities for renewed exploitation before environmental damage has been restored.
“This mechanism opens the way for the continued use and exploitation of these areas after control shifts from previous operators to SOEs, without making ecological restoration a prerequisite. As a result, enforcement risks merely changing who controls the area, rather than restoring the damage caused by mining,” Aryanto said.
PWYP Indonesia researcher Adzkia Farirahman also raised concerns over the planned collection of administrative fines as part of the enforcement process. According to her, non-tax state revenue (PNBP) derived from these fines must be directly linked to the financing of environmental restoration.
“The fundamental problem is the absence of a clear link between fine revenues and the financing of environmental restoration. PNBP derived from administrative fines risks being absorbed into general state revenue, as the PNBP framework does not provide a specific earmarking mechanism that legally binds the use of funds to particular locations and restoration plans. The government must secure these funds through the Environmental Fund Management Agency (BPDLH) to ensure that sanction revenues are actually disbursed for the rehabilitation of damaged ecosystems,” Adzkia said.
In its seven demands, PWYP called on the Task Force to regularly disclose verification results, including lists of companies and their beneficial owners, licensing information, locations, the size of affected areas, the amount of fines collected, and the status and management plans for areas subject to enforcement.
The coalition also urged the Task Force and law enforcement authorities to trace financial flows and take action against all parties involved. According to PWYP, enforcement must cover business operators, corporate beneficial owners, officials responsible for issuing permits and conducting oversight, parties facilitating or protecting illegal activities, and processing facilities or smelters receiving ore from illegal mines.
Furthermore, PWYP called on the Ministry of Energy and Mineral Resources and the Ministry of Forestry to temporarily suspend the issuance of new mining permits and mining operations in locations undergoing enforcement proceedings until the legal status of the areas and their environmental restoration requirements have been determined. The coalition stressed that no exemptions should be granted on the grounds of National Strategic Projects (PSN) or critical mineral allocations.
The Ministry of Forestry was also urged to designate areas subject to enforcement as forest areas requiring mandatory rehabilitation. Affected communities must be involved in determining the status of these areas and developing restoration plans, while implementation progress must be publicly disclosed.
Regarding financing, PWYP called on the Ministry of Finance to specifically allocate PNBP derived from administrative forestry fines to ecosystem rehabilitation in forest areas affected by illegal mining. The coalition also advocated for reforms to the fine calculation formula, taking into account the characteristics of the affected areas, the extent of environmental damage, biodiversity value, and the full cost of restoration, in accordance with the polluter pays principle.
Source: Ecobiz.asia