The government has taken control of a 275.36-hectare mining area in Central Papua. The company’s 3,500-hectare mining concession has had its licence revoked, while state owned PT Antam has been identified as the proposed operator of the former mining area
ICN News, Nabire, Central Papua — The Indonesian government has taken firm action against the gold mining operations of PT Kristalin Eka Lestari in Makimi District, Nabire Regency, Central Papua. On Thursday, 22 October 2026, Indonesian Defence Minister Sjafrie Sjamsoeddin personally led an enforcement operation at the mining site alongside officials from the Forest Area Enforcement Task Force (Satgas PKH).
During the operation, a mining area covering 275.36 hectares was brought under state control through the task force. Meanwhile, PT Kristalin Eka Lestari’s Mining Business Licence (Izin Usaha Pertambangan or IUP) had been revoked under a decision dated 12 October 2026.
The operation was conducted under Presidential Regulation No. 5 of 2025 concerning the enforcement of forest-area regulations. The action marks a significant development in Indonesia’s oversight of mining activities and the enforcement of regulations governing natural resource management, particularly in Central Papua.
SENIOR STATE OFFICIALS JOIN THE OPERATION
The enforcement operation in Nabire involved several senior government and security officials. In addition to Defence Minister Sjafrie Sjamsoeddin, those present included Attorney General Sanitiar Burhanuddin, Indonesian Military Commander General Agus Subiyanto, National Police Chief General Suyudi Ario Seto, State Intelligence Agency Chief Muhammad Herindra, and representatives of various ministries and government institutions.
Sjafrie, in his capacity as Chairman of the Steering Committee of the Forest Area Enforcement Task Force, reaffirmed the government’s commitment to continuing enforcement measures against activities that violate applicable regulations.
According to the government’s official statement, such operations face various challenges and resistance. Nevertheless, the government has stated that enforcement will continue in accordance with the law.
The involvement of multiple state institutions underscores that the operation extends beyond mining-site management. It also concerns law enforcement, state control over natural resources, and companies’ compliance with licensing and regulatory requirements.
3,500-HECTARE MINING CONCESSION REVOKED
The revocation of PT Kristalin Eka Lestari’s mining licence is a central development in the case. According to reports on the government’s decision, the revoked mining concession covers 3,500 hectares. This is separate from the 275.36-hectare area targeted in the enforcement operation.
The distinction is important. The 3,500-hectare figure refers to the area covered by the revoked mining licence, whereas the 275.36-hectare figure refers to the mining area addressed during the enforcement action. The licence revocation also has implications for the company’s continued operations. According to government statements, the company remains responsible for fulfilling applicable outstanding obligations, including environmental rehabilitation and financial obligations to the state, in accordance with prevailing regulations.
For the wider mining industry, the case highlights the importance of valid licensing, compliance with forest-area requirements, reclamation obligations, and environmental management.
STATE-OWNED PT ANTAM IDENTIFIED AS PROPOSED OPERATOR
Another development attracting industry attention is the government’s plan to place the former mining area under the management of a state owned enterprise. Attorney General Sanitiar Burhanuddin stated that mining areas taken over by the state would be handed over to a state owned enterprise, in this case PT Aneka Tambang Tbk, widely known as Antam. The government expects Antam to play a role as both investor and operator, enabling the state to manage the mining asset through a state owned company.
The proposal raises several issues to watch, including the formal transfer mechanism, the status of the area and its operating licences, and operational readiness should Antam’s appointment proceed.
However, the proposed management arrangement must be distinguished from actual mining operations. The announcement of a prospective operator does not, by itself, mean that Antam has already commenced production at the site.
IMPLICATIONS FOR INDONESIA’S MINING INDUSTRY
The enforcement action in Nabire represents a significant development in the government’s approach to mining activities in forest areas. For industry participants, the PT Kristalin Eka Lestari case highlights several areas requiring close attention: licensing compliance, consistency between mining activities and licensed areas, approvals for the use of forest areas, and reclamation and post-mining guarantees.
Meanwhile, if the proposed transfer to Antam proceeds, the development will also warrant attention from the perspectives of investment, state-asset governance, legal certainty, and the contribution of mining activities to the regional economy.
The next developments to monitor include environmental rehabilitation, the settlement of the company’s outstanding obligations, and formal decisions concerning the proposed management of the area by a state-owned enterprise.
The Nabire operation is therefore more than a report about the revocation of a single company’s mining licence. It is also a development with broader implications for the governance and regulatory oversight of Indonesia’s mining industry.
Sources: Ministry of Defence of the Republic of Indonesia; reports concerning the revocation of PT Kristalin Eka Lestari’s mining licence.
Muslim M. Amin, Editor in Chief
ICN NEWS — Indonesian Coal & Nickel News
For advertising and subscriptions, please contact us via WA Or Email
Need a research report? Please visit CDMI Consulting
