Jakarta – The Ministry of Energy and Mineral Resources (MEMR) has imposed sanctions in the form of temporary license revocation on 190 mining companies, the majority of which are engaged in the coal sector, for failing to set aside reclamation guarantee funds.
This step was confirmed through a letter from the Directorate General of Minerals and Coal (Minerba), Number T-1533/MB.07/DJB.T/2025, issued in September 2025.
Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Tri Winarno, on Tuesday, September 23, said that the government cannot tolerate companies that neglect their basic post-mining obligations. “They have not provided reclamation guarantees. Meanwhile, (mining operations) have been suspended,” he said.
According to Tri, mining permits (IUP) can be reactivated once companies have fulfilled their reclamation guarantee fund obligations. “If, for example, the documents are there and have been approved, but the funds have not been deposited, then automatically our permits are frozen temporarily. Pay first, then you can apply for a permit again,” he explained.
Environmental obligations remain in force
Even though the permits have been suspended, MEMR still requires all companies to carry out their mining management responsibilities. This includes maintenance, upkeep, monitoring, and environmental protection in their respective IUP areas.
Tri said that these sanctions are not merely punishments, but rather incentives for mining companies to be more disciplined in complying with their regulated environmental obligations.
The government is also preparing new regulations regarding the reclamation guarantee mechanism. The plan is to require the funds to be in the form of long-term deposits, so that they are more secure and cannot be withdrawn arbitrarily by companies.
The sanctions imposed on these 190 mining companies demonstrate the government’s seriousness in regulating the coal sector, which still accounts for the majority of the country’s energy supply. With its large reserves, this sector is indeed crucial, but it also poses a risk of environmental damage if reclamation is neglected.
MEMR has confirmed that monitoring measures will continue to be tightened. The government is also encouraging mining companies to not only comply with their financial obligations, but also to ensure post-mining environmental sustainability. (Hartatik)
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