Indonesia Strengthens Law Enforcement to Return Illegal Mining Assets
Jakarta, The government is committed to strengthening law enforcement in the mining sector by prioritizing the return of assets from illegal mining practices. This asset recovery approach is positioned as a “shock effect” so that perpetrators are not only punished but also lose all proceeds of crime and supporting facilities, from heavy equipment and warehouses to escrow accounts.
President Prabowo emphasized his commitment to cracking down on illegal mining and natural resource smuggling. One major step taken was to confiscate assets worth IDR 7 trillion from six smelters for the state. The asset handover was carried out in stages. This handover represents a major step for the government in recovering state losses from illegal mining practices in the PT Timah area.
“Together, we are witnessing the handover of state assets from private companies that violate the law,” he emphasized.
The government also emphasized the importance of post-confiscation governance. Confiscated assets will be managed accountably through established mechanisms, either diverted to state revenue or utilized for public services and environmental restoration.
The Minister of Forestry (Menhut), Raja Juli Antoni, expressed his support for the government’s move to return confiscated state assets to PT Timah Tbk while ensuring their use is in line with the principles of sustainable, good forest governance.
“The handover of confiscated state assets, led by the President, not only aims to restore economic assets, but also provides momentum to strengthen sustainable natural resource governance,” he said.
On the upstream side, licensing and supervision are being restructured through strengthening databases, geospatial networks, and streamlining the supply chain, including loading ports and distribution channels. The government is also tightening the requirement to verify the origin of goods at processing/refining facilities to eliminate opportunities for illegal mineral laundering.
Similarly, Jamaludin Malik, a member of Commission XII of the Indonesian House of Representatives (DPR RI), supports President Prabowo Subianto’s firm efforts to shut down illegal mining in various regions that are detrimental to state revenues and causing environmental damage.
President Prabowo’s steps to warn and regulate illegal mining are very appropriate. “The House of Representatives will stand behind the government to ensure this policy is implemented effectively, so that natural resources truly provide the greatest possible benefit to the people and the state,” he said.
The return of illegal mining assets affirms the presence of the state and strengthens the deterrent effect. Perpetrators are not only punished but also forfeit all proceeds of crime and their supporting facilities, while confiscated assets are managed accountably for state revenue and environmental restoration.
