Abandoned mines idle for two years can be taken over by the state

President Prabowo Subianto has signed a regulation allowing the state to take over abandoned areas, including mining concessions and business licenses that have remained idle for at least two years.

The policy is stipulated in Government Regulation (PP) No. 48 of 2025 on the Control of Abandoned Areas and Land, which was signed by Prabowo on Nov. 6, 2025.

Under the regulation, the government is authorised to seize concessions or business permits in areas deemed to have undergone no development.

 “Areas whose permits, concessions, or business licenses are deliberately not operated, not used, and/or not utilised by the permit holder become objects of control of abandoned areas,” the regulation states.

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In addition to mining, the regulation applies to concessions and business permits in the plantation, industrial, tourism, and housing sectors.

An area may be designated as abandoned if the concession or license holder fails to utilise the land or business permit for at least two years after the rights are granted. This includes land under a Right to Cultivate (HGU) that is deliberately left uncultivated or unused for the same period.

The process of taking control will be carried out in stages, beginning with an evaluation, followed by formal warnings, and culminating in the designation of the area as abandoned.

Once designated, abandoned areas may be transferred to the state Land Bank or allocated to other parties through a transparent and competitive mechanism, according to the regulation.

Further details on the implementation of the policy will be set out in a ministerial regulation.

Editing by Reiner Simanjuntak