Artisanal miners seek easier permits as gold output tops 120 tons

By Cepi Setiadi

Indonesia’s artisanal and small-scale gold mining sector produces around 120 tons of gold annually, exceeding the output of PT Freeport Indonesia, the head of the Indonesian Community Miners Association (APRI) said on Monday, as the group urged the government to simplify licensing procedures.

Gatot Sugiharto, chairman of Indonesian Community Miners Association, said the sector’s production highlighted the economic potential of community-based mining if supported by more favorable regulations.

“Artisanal mining produces around 120 tons of gold per year, while PT Freeport’s production is not even half of that,” Gatot told a hearing with Commission XII of the House of Representatives (DPR RI).

“This means artisanal mining is actually bigger than PT Freeport, and the ownership is 100% in the hands of the Indonesian people,” he said.

Indonesia has been seeking to formalize artisanal and small-scale mining activities, many of which operate without permits and have long been associated with environmental damage and mercury use.

Gatot said APRI was established by grassroots gold miners, many of whom were previously categorized as illegal miners, known locally as PETI, or unlicensed mining operators.

He said many small-scale miners remained unfamiliar with mining regulations and licensing procedures due to limited government outreach and education programs.

To promote responsible mining practices, APRI has established around 1,000 Responsible Mining Community (RMC) groups across Indonesia, Gatot said.

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The groups are committed to obtaining permits, improving safety standards, adopting environmentally friendly practices, and carrying out post-mining land reclamation in line with good mining practices, he added.

However, Gatot said artisanal miners continued to face major regulatory barriers, including difficulties in obtaining Artisanal Mining Permits (IPR) and limited access to information on designated Artisanal Mining Areas (WPR).

He also criticized the high cost of obtaining permits, saying the licensing process for a 5-10 hectare artisanal mining concession could cost more than Rp 1 billion ($61,000) without any guarantee of approval.

Gatot also questioned the effectiveness of government programs aimed at eliminating mercury use in artisanal mining, saying many mercury-free processing facilities provided to mining communities had been left idle and unused.

He said artisanal miners were willing to become fully licensed, pay taxes, and comply with environmental and safety standards if the government simplified regulations and provided greater support.

Editing by Reiner Simanjuntak