Energy Minister sets administrative penalty rates for mining in forest areas

By Romel S. Gurky

Minister of Energy and Mineral Resources Bahlil Lahadalia has issued Ministerial Decree No. 391.K/MB.01/MEM.B/2025 on administrative penalty rates for mining activities conducted in forest areas for nickel, bauxite, tin and coal commodities.

According to a copy of the decree obtained by Petromindo.com on Tuesday, the calculation of administrative penalties is based on the agreement reached at a meeting of the Task Force for the Enforcement of Forest Area Regulations for Mining Activities. The meeting was confirmed through a letter from the Deputy Attorney General for Special Crimes, who also serves as the Task Force’s Executive Chair, Letter No. B-2992/Set-PKH/11/2025 dated November 24, 2025.

The decree sets the following administrative penalty rates:

a. Nickel: Rp 6,502,000,000 per hectare

b. Bauxite: Rp 1,761,000,000 per hectare

c. Tin: Rp 1,251,000,000 per hectare

d. Coal: Rp 354,000,000 per hectare

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The collection of administrative penalties for mining activities conducted in forest areas will be carried out by the Task Force for the Enforcement of Forest Area Regulations for Mining Activities. Funds collected from these penalties will be recorded as non-tax state revenue in the energy and mineral resources sector.

The decree states that the penalty rates apply to enforcement actions carried out by the Task Force against violations of mining activities in forest areas.

Editing by Reiner Simanjuntak