Environment ministry sues Agincourt over alleged environmental damage

Friday, January 30 2026 - 07:51 AM WIB

The Ministry of Environment (KLH) has filed a civil lawsuit against gold miner PT Agincourt Resources at the South Jakarta District Court, seeking Rp200.99 billion (about US$13 million) in compensation for alleged environmental damage.

Court documents show the lawsuit was filed on Jan. 20, 2026 and relates to claims of environmental destruction and pollution linked to the company’s operations.

Agincourt operates the Martabe gold mine in South Tapanuli, North Sumatra. Its business licence was revoked late last year after authorities said violations by the company and other firms contributed to flooding and landslides in parts of Sumatra. Agincourt is a subsidiary of PT United Tractors Tbk (IDX: UNTR), part of the Astra Group.

In its filing, KLH asked the court to declare that Agincourt committed environmental destruction and to hold the company strictly liable for resulting losses.

The ministry is seeking Rp200.99 billion in environmental damage compensation, to be paid in cash to the state treasury. It is also requesting that the court order Agincourt to carry out environmental restoration valued at Rp25.24 billion.

Read also : Mining association urges fair review of Agincourt Resources to protect investment climate

KLH said the restoration must be implemented based on a proposal submitted to the ministry, detailing the restoration location, area size, affected environmental components, recovery standards and methods, implementation schedule, cost plan, target outcomes, and monitoring mechanisms. The company would be required to submit progress reports every six months.

In addition, the ministry has asked the court to impose a penalty of 6% per year on the compensation amount for each day of delay in payment, as well as a separate 6% annual penalty for delays in carrying out restoration, starting from the date the ruling becomes legally binding.

KLH also requested that the ruling be enforceable immediately, even if Agincourt files an appeal or other legal remedies.

The lawsuit follows a broader legal crackdown after deadly floods and landslides struck Sumatra in late 2025, killing more than 1,000 people. Earlier this month, KLH said it had filed civil lawsuits against six companies, including Agincourt, seeking a combined Rp4.84 trillion in damages over alleged environmental degradation across more than 2,500 hectares in North Sumatra.

Following the licence revocations, Indonesia’s sovereign wealth fund Danantara has said it will transfer management of the Martabe mine to a newly formed state entity, Perusahaan Mineral Nasional (Perminas), though compensation for Agincourt or its parent company has yet to be decided.

Editing by Reiner Simanjuntak

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