Indonesian Coal Industry Warns of Risks in Illegal Mining Partnerships

Concerns Over Legal Certainty and Governance

The Indonesian coal mining industry is raising significant concerns about the potential risks associated with proposed partnerships between legal mining companies and illegal mining operations (PETI) ¹

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Source 2

https://industri.kontan.co.id/news/rencana-kemitraan-tambang-ilegal-rentan-celah-hukum-dan-risiko-lingkungan

. The Indonesian Coal Mining Association (APBI) has expressed apprehensions that such collaborations could lead to a blurring of lines between legal and illegal mining activities, potentially weakening legal certainty and overall industry governance.

Regulatory Perspectives and Proposed Frameworks

The Directorate General of Law Enforcement (Gakkum) under the Ministry of Energy and Mineral Resources is currently exploring the possibility of implementing a partnership scheme to manage PETI through collaborations with legal mining entities ²

. This approach is drawing parallels with the legalization framework for existing oil wells as outlined in Minister of ESDM Regulation No. 14/2025. However, officials emphasize that managing PETI requires different handling mechanisms as these illegal operations can emerge at any time.

Industry Concerns and Fairness Issues

APBI's Executive Director, Gita Mahyarani, highlighted that implementing such partnerships could be perceived as unfair to compliant businesses that have adhered to regulations ¹

. The association fears that this approach might reward illegal activities while compliant companies face strict regulatory requirements. The industry is particularly concerned about the potential creation of legal loopholes and the environmental impacts of legitimizing previously illegal operations.

Balancing Governance and Industry Needs

The proposed partnership scheme is intended to bring order to illegal mining activities, but it faces significant opposition from legal practitioners and industry experts who are concerned about the potential legal and environmental risks ²

. As the government continues to evaluate this proposal, the coal mining industry remains vigilant about maintaining legal certainty and proper governance in the sector.