Indonesian Government Launches Auction of Seized Bauxite Stockpile

Background and Regulatory Framework

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has initiated an open auction for 629,000 metric tons of bauxite stockpile seized by the government and currently stored in Kepulauan Riau ¹

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Source 2

https://finance.detik.com/energi/d-8262288/esdm-lelang-629-ribu-mt-bauksit-hasil-sitaan-di-kepulauan-riau

. The auction process will be conducted through the official government auction platform lelang.go.id from December 16, 2025, to December 22, 2025 ¹

Source 1

https://industri.kontan.co.id/news/kementerian-esdm-buka-lelang-629000-ton-bauksit-potensi-penerimaan-rp-200-miliar

. The subsequent winner determination will take place at the Kantor Pelayanan Kekayaan Negara dan Lelang (KPKNL) in Batam.

Legal Basis and Implementation

This auction is conducted in accordance with Government Regulation No. 39/2025, which amends the previous regulation (PP No. 96/2021) regarding the implementation of mineral and coal mining activities ¹

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Source 2

https://finance.detik.com/energi/d-8262288/esdm-lelang-629-ribu-mt-bauksit-hasil-sitaan-di-kepulauan-riau

. Director General of Law Enforcement at ESDM, Jeffri Huwae, stated that this auction is part of the government's commitment to enforcing the law and optimizing state revenue from seized commodities.

Financial Implications

The auction is expected to generate potential revenue exceeding Rp 200 billion, contributing significantly to the state's non-tax revenue (PNBP) in the ESDM sector ²

. The ministry is optimistic about meeting its PNBP target of Rp 254 trillion for 2025, with this bauxite auction serving as a valuable end-of-year contribution to state revenue.

Future Plans

Jeffri Huwae emphasized that any future seizures of mineral stockpiles, including bauxite, coal, nickel, or other commodities, will be treated as state-controlled assets and subsequently auctioned off ²

. This policy demonstrates the government's proactive approach to managing illegal mining activities while maximizing state revenue through legal channels.