Jakarta. President Prabowo Subianto has threatened to revoke mining permits held by companies that have remained inactive for more than two years, saying Indonesia must ensure its vast natural resources are developed for public benefit rather than left idle for speculation.

Prabowo said he had instructed Energy and Mineral Resources Minister Bahlil Lahadalia to revoke mining business permits, known as IUPs, held by companies that had shown no meaningful activity for more than two years.

He criticized the practice of granting concessions to businesses without the expertise or capacity to operate mines, saying some investors might have obtained permits primarily for speculative purposes.

“Once they get a concession, they use it for speculation or to list it on stock exchanges somewhere. In the end, the nation loses out,” Prabowo said.

He said authorities should assess applicants’ ability to develop and operate mining projects before granting permits. Concessions that remain idle prevent the country from fully exploiting its natural resources and generating economic benefits for local communities.

$300b in Reserves

Prabowo said Thursday that five mining permits in Indonesia covered proven natural resource reserves worth Rp 5,400 trillion ($298.8 billion), based on studies conducted under the Joint Ore Reserves Committee (JORC) reporting framework.

“Out of several hundred mining permits, five have proven reserves based on JORC studies. Their value is Rp 5,400 trillion, or nearly $300 billion,” Prabowo said at the National Coordination Meeting of Regional Financial Access Acceleration Teams (TPAKD) in Jakarta.

He cautioned, however, that the estimated value represented wealth still underground, rather than revenue already generated for the country.

“Don’t applaud too quickly, because that wealth is still underground. But my point is that our country is extremely rich,” he said.

Masela Gas Project Illustrates Long Delays

Prabowo also cited the Masela Block in the Tanimbar Islands of Maluku, where development had stalled for nearly 28 years, as an example of delays that can prevent Indonesia from benefiting from its natural resources.

He said he had personally intervened to discuss the project’s future with Japanese stakeholders, including Inpex, the project operator, and questioned whether they remained committed to proceeding.

“I asked them politely whether the Japanese side, including Inpex, was still interested in developing it. If not, we would have to revoke the concession because our people urgently need it. Many Indonesians are still struggling,” Prabowo said.

He added that Japanese representatives had attended recent discussions and pledged to begin project activities within six months.

The Abadi liquefied natural gas (LNG) project in the Masela Block broke ground in July 2026, marking a major step forward for one of Indonesia’s longest-delayed energy developments.

With an estimated investment of $20.9 billion, the project is expected to strengthen Indonesia’s energy security and support economic development in the country’s eastern regions. The Abadi field has reported proven gas reserves of 18.5 trillion cubic feet, making it a significant asset in Indonesia’s energy portfolio.

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