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FLASH: Four nickel mines in Maluku Utara in Indonesia face fines

Source: Mysteel Feb 24, 2026 17:03
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Indonesia's Forest Area Management Task Force (PKH Task Force) has imposed sanctions on four nickel mining companies operating in Maluku Utara province, one of which is linked to Maluku Utara Governor Sherly Tjoanda Laos. The four companies conducted mining operations in forest areas without holding Approval for Forest Area Utilization (PPKH).

 

These companies are considered key players in Indonesia's national nickel industry: PT Weda Bay Nickel (WBN), PT Halmahera Sukses Mineral (HSM), PT Trimegah Bangun Persada (TBP), and PT Karya Wijaya (KW). Based on calculations according to Minister of Energy and Mineral Resources Decree No. 391.K/MB.01/MEM.B/2025, the four companies have been fined under the penalty standard for nickel commodities set at IDR 6.5 million per hectare.

 

WBN, which operates in Central and East Halmahera Island, has the largest violation area, encompassing 444.42 hectares of land without permits. The government has even sealed off 148 to 172.82 hectares of WBN's mining area in the form of confiscation as state assets.

 

HSM, operating in Central Halmahera Island, illegally occupies 234.04 hectares of land. TBP, a company under the Harita Group, operates illegally on 79.27 hectares of land on Obi Island, South Halmahera.

 

KW, which conducts illegal mining operations on Gebe Island in Central Halmahera Island and is associated with Maluku Utara Governor Sherly Tjoanda Laos, has an illegal mining area of 51.33 hectares without permits.

 

In addition to lacking a Approval for Forest Area Utilization (PPKH), a report from the Financial Audit Agency (BPK) also noted that KW has not provided reclamation guarantee funds and does not have a dedicated wharf or pier.

 

Written by Cora Ji, jiruyan@mysteel.com

 

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