KLH freezes permits of 80 coal, nickel miners; more sanctions possible

The Ministry of Environment/Environmental Control Agency (KLH/BPLH) has frozen the environmental permits of 80 coal and nickel mining business units following findings of serious violations in a nationwide review of extractive activities, according to Ecobiz.asia.

Environment Minister and head of BPLH Hanif Faisol Nurofiq said the ministry is evaluating 1,358 coal and nickel mining units across Indonesia. Of the 250 units that have completed the assessment process, around 80 were found to have committed serious breaches and had their environmental permits suspended.

 “This number will likely increase as the evaluation continues, including for business units suspected of contributing to flooding,” Hanif said after the 2026 National Coordination Meeting on Waste Management in Jakarta on Wednesday (February 25, 2026), as reported by Ecobiz.asia.

The evaluation covers 14 priority provinces with extensive coal and nickel mining operations. One of the key assessment criteria is the contribution of mining activities to ecological damage, including flooding and watershed (DAS) degradation.

Hanif said one of the companies whose permit was frozen is PT Citra Palu Minerals, a subsidiary of PT Bumi Resources Minerals Tbk, which operates in Palu, Central Sulawesi.

He noted that illegal mining activities — not conducted by the company — were also discovered in the surrounding area. The ministry is reviewing law enforcement mechanisms to ensure sanctions are imposed not only on licensed operators but also on illegal miners.

 “Law enforcement must continue. CPM’s mining site is located in the highlands of Palu City. If heavy rainfall occurs, the potential environmental damage is very significant,” Hanif said.

Read also : KLH finds four coal miners responsible for river pollution in S. Sumatra

KLH has installed police lines and ordered a halt to all activities at the site pending completion of legal proceedings and an environmental audit.

 “From the outset, we instructed that police lines be installed, meaning the site is sealed and no activities are permitted until the legal process is concluded,” he added.

Potential state revenue

Beyond improving governance and environmental protection, the permit suspensions could generate substantial state revenue from non-compliance fines. Hanif estimated potential fines could reach between Rp5 trillion and Rp6 trillion.

However, he stressed that revenue collection is not the primary objective.

 “This is not about pursuing fines. What we seek is a deterrent effect, so that other business actors become more cautious and comply with environmental regulations,” Hanif said.

Editing by Reiner Simanjuntak