Prabowo Targets Illegal Mining Mafia in Rp 300 Trillion Crackdown

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JAKARTA, Investortrust.id — President Prabowo Subianto has ordered a nationwide crackdown on illegal mining operations, warning that 1,063 unlicensed sites have cost Indonesia at least Rp 300 trillion, or $18.4 billion. He pledged that the campaign would be enforced without exception, even against figures within his own political party.

Speaking in his State Address at the Annual Session of the People’s Consultative Assembly on Monday, Aug. 25, 2025, Prabowo said the state could no longer tolerate the activities of what he described as a “mining mafia” undermining national sovereignty and state revenues.

“I have been informed by officials that there are 1,063 illegal mines with potential state losses of at least Rp 300 trillion. We will take action against all who violate the law, regardless of their rank or political affiliation. Whether generals from the military or police, or even members of my party, there will be no exceptions,” he said.

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Sweeping Mandate

To institutionalize enforcement, Prabowo has tasked Minister of Energy and Mineral Resources Bahlil Lahadalia to lead coordination against unlawful operations, both in protected forests and unlicensed concessions.

Illegal mining is typically divided into two categories: operations inside forest areas without a forest-use permit, and mines outside forests operating without an official mining license.

“President Prabowo convened ministers in Hambalang last week to discuss downstream industrialization and the mining sector’s 15% contribution to state revenues, including non-tax royalties, VAT, and income tax. Illegal mining directly undermines that contribution,” Bahlil said.

A new Presidential Regulation issued in 2025 established the Forest Area Enforcement Task Force (Satgas PKH), a task force mandated to enforce forest-use regulations, recover misused lands, and supervise reforestation. The body is chaired by the Minister of Defense, with the Attorney General, military commander, and national police chief as deputies.

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Coordinated Enforcement

The Ministry of Energy’s Directorate General of Law Enforcement confirmed it is verifying data on over 1,300 suspected illegal sites cited by the president. Director General Rilke Jeffri Huwae said inspections would begin within weeks but stressed that enforcement would require coordination across local governments and law enforcement.

“Illegal mining refers to operations with no license at all, not companies that hold permits but violate technical standards. Identifying locations is our first priority, and handling this problem cannot fall on a single agency,” Rilke said.

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Business Backs Crackdown

Industry groups welcomed the president’s stance. The Indonesia Mining Association (IMA) pledged support for enforcement and held talks with the ministry on tightening governance across the mineral and coal sector.

Hendra Sinadia, IMA’s executive director, said, “We fully support the government’s efforts to eradicate illegal mining activities. This will improve governance and strengthen industry credibility.”

Meanwhile, Moshe Rizal, investment committee chairman of the Oil and Gas Companies Association (Aspermigas), urged the government to create a permanent enforcement body modeled on the National Narcotics Agency.

“I do not propose another ad hoc task force, but a permanent law-enforcement institution with the authority to arrest and prosecute directly. This is the only final solution. Anything less will fail to eradicate illegal mining,” Moshe said.

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