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The central government has revoked the gold mining permit of PT Kristalin Eka Lestari in Makimi District, Nabire Regency, Central Papua. According to BBC News Indonesia, the decision was based on findings concerning the use of forest areas, reclamation guarantees, and company documents. The government then announced plans to transfer management of the area to PT Aneka Tambang Tbk, or Antam.
Reasons for revoking the permit
The permit revocation was announced at a ceremony on October 22 led by four senior state officials on behalf of the Task Force for Forest Area Enforcement. They were National Police Chief General Suyudi Ario Seto, Attorney General Sanitiar Burhanuddin, Indonesian National Armed Forces Commander General Agus Subiyanto, and Defense Minister Sjafrie Sjamsoeddin.
Sanitiar said a joint team's field verification found gold mining activities that did not comply with forest area use permit requirements. According to the government, the activities took place both inside and outside PT Kristalin Eka Lestari's mining permit area. The production forest area allegedly entered without a permit covered 375 hectares, comprising approximately 270 hectares inside the permit area and 105 hectares outside the concession.
The government also raised concerns about a reclamation guarantee that had reportedly not been deposited and a Work Plan and Budget document that had not been completed. After the permit was revoked, the company was declared to no longer have a legal basis for mining. The company was also required to restore the environment, pay royalties, and fulfill its obligations regarding workers' wages and severance pay.
Company denies allegations
PT Kristalin Eka Lestari's legal counsel from Haris Azhar Law Office denied all of the government's allegations. Fandi Denisatria, an attorney representing the company, said supporting documents for the mining activities were being processed and had not yet been completed.
Fandi said the company had been applying for a forest area use permit since 2024, before the Task Force for Forest Area Enforcement was established. The statement indicates that the company knew its mining activities were located in a forest area, but the company emphasized that it had not remained idle in handling the permit process.
Management plan involving Antam
BBC News Indonesia reported that mining activities in the area would continue through the transfer of the concession to Antam. However, KONTAN cautioned that the decision to grant the area to Antam still needed to be confirmed. The planned transfer of assets must be distinguished from an official management designation.
KONTAN said the area that Antam could potentially manage covers 275.36 hectares. Mirae Asset Sekuritas Senior Market Analyst Muhammad Nafan Aji Gusta Utama said the addition of the mining area could become a positive catalyst for Antam's gold business over the medium to long term. Nevertheless, its impact on operations and financial performance still needs to be monitored.
Questions about benefits for residents
The gold potential in Nabire has been studied academically since at least the early 1990s. Gold in the area has also been traditionally panned by thousands of people, including Indigenous Papuans and migrants. PT Kristalin Eka Lestari entered Makimi District toward the end of the 2000s and obtained a production operation permit from the Ministry of Energy and Mineral Resources in 2021.
The mine's presence has prompted differing views within the community. Some residents believe mining activities have altered the landscape, triggered flooding, and eliminated food sources. Other community groups support the company's presence, which has shown in its social media posts the distribution of staple foods and financial assistance to nearby communities.
Panah Papua activist Sulfianto Alias said the mining operation had not improved the welfare of residents in Makimi District or Nabire in general. This concern is an important part of the planned management transition, given that Indigenous Papuans in the area are reportedly still among the poorest people in Indonesia despite decades of gold mining.
