Indonesian government Revokes Mining Permits, Including Martabe Gold mine operator
Indonesia’s President Prabowo Subianto has revoked the business permits of 28 companies following an audit triggered by recent disasters across Aceh, North Sumatra, adn West Sumatra provinces. The move, announced Tuesday evening, impacts a broad range of sectors, including forestry and plantation mining, with PT Agincourt Resources, operator of the Martabe gold mine in South Tapanuli, North Sumatra, among those affected.
The government’s decision stems from concerns over violations committed by these companies, according to a statement released by the Forest Area Control Task Force (PKH Task Force). Minister of State Secretary Prasetyo Hadi revealed that 22 of the revoked permits were held by companies attempting to exploit natural and plantation forests, covering a vast 1,010,991 hectares. The remaining six permits belonged to entities involved in plantation mining and the utilization of timber forest products.
PT Agincourt Resources, a subsidiary of PT United Tractors Tbk (UNTR), has yet to receive official notification of the permit revocation. Katarina Siburian Hardono, Senior Manager of Corporate Communications at PT Agincourt Resources, stated on wednesday that the company is unable to provide further comment untill it receives formal interaction detailing the decision.
Despite the government’s action, the company maintains its legal rights to conduct business in Indonesia. “The company respects every government decision, and continues to protect the Company’s rights in accordance with applicable laws and regulations,” Hardono said in a company release. Agincourt Resources also affirmed its commitment to upholding principles of good corporate governance and full compliance with all relevant regulations.
The PKH Task Force initiated the audit in the wake of devastating events in the three provinces, suggesting a heightened focus on environmental oversight and responsible resource management.The scale of the revoked permits – impacting over one million hectares of forest land – underscores the government’s resolve to address perceived abuses within the natural resource sector.
The situation remains fluid as PT Agincourt Resources awaits official notification and assesses its legal options. The revocation of the Martabe gold mine permit,a significant operation in North Sumatra,could have substantial implications for Indonesia’s gold production and the regional economy. Further developments are expected as the company responds to the government’s decision and seeks clarity on the specific violations cited.
Why: the Indonesian government revoked the business permits of 28 companies due to violations of regulations related to forestry and plantation mining, following an audit prompted by recent disasters in Aceh, North Sumatra, and West Sumatra provinces. The government aims to address perceived abuses within the natural resource sector and enhance environmental oversight.
Who: The key players are the Indonesian government, led by President Prabowo Subianto, the Forest Area Control Task Force (PKH Task force), and the 28 affected companies, most notably PT Agincourt Resources, operator of the Martabe gold mine.
What: The government revoked the business permits of 28 companies, impacting 1,010,991 hectares of natural and plantation forests, and areas involved in plantation mining and timber forest product utilization. The revocation specifically affects PT Agincourt Resources’ permit to operate the Martabe gold mine.
How did it end? as of this report, the situation is ongoing. PT Agincourt Resources has not yet received official notification of the revocation but intends to protect its legal rights and is awaiting further details regarding the alleged violations. The long-term outcome remains uncertain, with potential implications for Indonesia’s gold production and the regional economy dependent on the company’s response and any legal challenges.
