Government Sets Administrative Fines for Mining in Forest Areas

The Ministry of Energy and Mineral Resources (ESDM) issued Ministerial Decree No. 391.K/MB.01/MEM.B/2025 on 14 December 2025. The decree sets per‑hectare administrative fines for nickel, bauxite, tin and coal mining activities carried out in forest areas.

The penalty rates were formulated based on agreements reached by the Forest Area Enforcement Task Force (Satgas PKH), which was established under Presidential Decree No. 5/2025 to curb illegal forest occupation. Satgas PKH will collect the fines, which will be recorded as non‑tax state revenue (PNBP).

Maximum fines amount to IDR 6.5 billion per hectare for nickel, IDR 1.7 billion for bauxite, IDR 1.2 billion for tin, and IDR 354 million for coal. Revenue from these sanctions is intended to support forest restoration and reinforce environmental compliance.