MDKA unit hands over Indonesia’s largest mine compensation forest area

PT Bumi Suksesindo, the operator of the Tujuh Bukit gold mine in East Java and a subsidiary of PT Merdeka Copper Gold Tbk (IDX: MDKA), has handed over more than 2,016 hectares of compensation forest land to the government as part of environmental obligations tied to its mining operations.

The company said the compensation area is the largest of its kind in Indonesia, exceeding the regulatory requirement for companies operating in protected forest areas.

Bumi Suksesindo operates the Tumpang Pitu deposit in Banyuwangi, under a forest use permit covering 992 hectares.

Under Indonesian regulations, companies using forest land must provide compensation areas at least twice the size of the permitted mining area, meaning the company was required to provide 1,984 hectares of replacement forest land.

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The company ultimately provided 2,016.69 hectares, about 32 hectares more than required.

The compensation land has been handed over to the Ministry of Environment and Forestry in stages between 2020 and 2022, covering locations in Bondowoso, East Java and Sukabumi, West Java.

The areas were reforested before being transferred to the government. In Bondowoso, the company planted species including teak, pine, sengon and fruit trees.

Indonesia requires mining companies operating in forest areas to establish compensation land to offset the environmental footprint of mining activities, part of broader efforts to expand forest coverage and support ecosystem restoration.

Editing by Alexander Ginting