On December 1, 2025, the Indonesian Ministry of Energy and Mineral Resources (ESDM) has officially established administrative fines for violations related to strategic mineral mining in forest areas. The regulation, outlined in Ministerial Decree No. 391.K/MB.01/MEM.B/2025, specifies penalty standards for mining activities involving nickel, bauxite, tin, and coal within forest zones.
Signed by ESDM Minister Bahlil Lahadalia on December 1, 2025, the decree supplements Government Regulation No. 45 of 2025, which addresses forestry administrative sanctions and procedures for non-tax state revenue from such penalties. This move reaffirms the government's commitment to regulating illegal mining and licensing irregularities in forested regions.
The fines are based on agreements reached by the Forest Area Law Enforcement Task Force (PKH Task Force), following a letter (B-2992/Set-PKH/11/2025) issued on November 24, 2025, by the Task Force's Executive Chair and Deputy Attorney General for Special Crimes.
The penalty structure serves as an enforcement tool to ensure transparency, accountability in natural resource utilization, and to curb state losses and environmental harm.
According to the decree, the maximum administrative fine for nickel mining violations is set at 6.5 billion IDR per hectare. Fines for other minerals are set at 1.7 billion IDR per hectare for bauxite, 1.2 billion IDR per hectare for tin, and 354 million IDR per hectare for coal.
All penalties will be collected by the PKH Task Force and recorded as non-tax state revenue (PNBP) in the energy and mineral resources sector. The regulation is effective immediately and will guide the Task Force's enforcement efforts.
Minister Bahlil emphasized the government's dedication to penalizing mining regulation breaches, especially when mining activities harm local communities.
The government aims to strengthen law enforcement in forest areas through this new policy while preventing environmental damage caused by non-compliant mining operations.
Written by Cora Ji, jiruyan@mysteel.com
