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BAPAN flags alleged illegal bauxite mining, pushes ESDM for transparent probe

Source: AL Circle Dec 09, 2025 15:35
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The Riau Islands office of the National Asset Research Agency (BAPAN) has submitted a complaint to the Ministry of Energy and Mineral Resources (ESDM) in regards to alleged illegalities occurring with bauxite mining operations in West Kalimantan. The complaint raised questions about mining operations and the export of products from the province of Riau Islands and requested an official investigation by the appropriate authorities.

The complaint was filed on Wednesday, December 3, 2025, by Ahmad Iskandar Tanjung, representing BAPAN Riau Islands. He stressed that the filing was meant to ensure transparency and fairness in law enforcement. "We filed this report because these activities have caused massive financial losses to the state," Ahmad said in Jakarta.

 

Based on BAPAN's findings, bauxite mines in Sanggau, West Kalimantan, allegedly continued to mine for years without any valid permits. Ahmad said local data indicates extraction was carried out by PT MKU and PT KBM, and sold to PT BAE in Bintan.

 

 "All three companies belong to the same owner, a man named Santoni," he claimed.

 

Investigators, Ahmad added, found no trace of mandatory reclamation guarantees. There were also no post-mining reports or required technical documents. These are obligations under Indonesia's mineral and coal mining rules.The activity, BAPAN alleges, has not stopped.

 

 "I visited Sanggau on Tuesday. The mine was still operating," Ahmad said.

 

He noted that suspected illegal operations may date back to 2008. "There was no investment recorded for these companies from 2023 to 2025," he added. No active mining permits from ESDM were found in recent years.

 

BAPAN stated that potential state losses ranging from hundreds of billions to trillions of rupiah.The calculation factors in long operational periods and production volumes. Ahmad also questioned port oversight. "What was the port authorities' justification for approving shipments?" he asked.

 

He criticised regional authorities for silence. "Where is the West Kalimantan police chief? Where is the governor? These questions must be answered," Ahmad said.

 

Beyond revenue losses, Ahmad highlighted environmental dangers. He linked unregulated mining to floods and ecological damage. "Trees above the mining pit are surely cut down. Water absorption disappears. That triggers disasters," he said.

 

 "We want to protect Indonesia from preventable disasters," he added.

 

BAPAN plans to escalate the issue to the Attorney General's Office task force and the Presidential Palace. Environmental NGOs are preparing to support the probe. "We are coordinating with many national environmental NGOs. They are ready to speak out," Ahmad said.

 

He warned that findings would be made public if authorities fail to act. "We are ready to release everything. We want the law enforced," he said.

 

Appealing to President Prabowo Subianto, Ahmad added, "The President has said: whoever they are, even a general act firmly."

 

The case revives persistent concerns over illegal mining governance in West Kalimantan.


It also comes as Indonesia seeks tighter control over bauxite supply chains.

 

Note: This article is published in accordance with an article exchange agreement between Mysteel and AL Circle.

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