Indonesian Energy Ministry Strengthens Mining Oversight, Vows Sanctions for Non-Compliance
Jakarta. The Energy and Mineral Resources Ministry continues to monitor the operational activities of mining sector players. This oversight aims to ensure that all companies comply with prevailing regulations, especially those related to sustainable environmental practices. If violations are found, the respective companies will be subject to sanctions in accordance with applicable laws.
Secretary of the Directorate General of Mineral and Coal, Siti Sumilah Rita Susilawati, said that this is in line with Ministerial Regulation No. 7 of 2020 on Procedures for the Granting of Areas, Licensing, and Reporting in Mineral and Coal Mining Business Activities.
In addition, Government Regulation No. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities also contains provisions for sanctions against violations of environmental obligations.
“If business actors fail to carry out technical and environmental obligations, including reclamation and post-mining activities, they may face administrative sanctions ranging from written warnings, temporary suspension of activities, to license revocation,” Siti said on Wednesday.
The Energy and Mineral Resources Ministry noted that mining is currently one of the sectors contributing significantly to emissions. This is evident from the substantial carbon footprint associated with the industry.
Siti explained that several factors contribute to the mining sector’s carbon footprint, including land clearing, energy consumption, and the use of non-environmentally friendly operational vehicles.
Mining Transformation
Previously, the Ministry emphasized that in line with Indonesia’s commitment to achieving net zero emissions (NZE) by 2060 or earlier, the Directorate General of Mineral and Coal continues to promote a transformation of the sector to be more emission-efficient while remaining competitive.
From a policy and strategic direction perspective, the Ministry supports and facilitates various initiatives. First, the implementation of coal co-firing with biomass in steam power plants, as a short- to medium-term strategy to reduce emissions from the electricity sector.
Second, support for the development and implementation of carbon capture, utilization, and storage (CCUS) technologies, especially for high-emission industrial facilities, including the mining and mineral processing subsectors. According to Siti, this technology is seen as a game-changer in industrial decarbonization strategies.
Third, strengthening the implementation of post-mining reclamation and revegetation efforts. In addition to being an environmental restoration obligation, revegetation also plays a role in carbon absorption and the restoration of ecological functions.
Fourth, increasing the use of clean energy in mining operations, including supporting the use of biodiesel such as B20 or B30, integrating solar panels for operational needs, and implementing energy efficiency measures.
Fifth, the Directorate General of Mineral and Coal is also pushing for the accelerated adoption of electric vehicles and electric-powered heavy equipment in mining operations, as part of the development of green and smart mining in Indonesia.
“The government continues to encourage sustainability to not only be a compliance requirement but to become a part of the operational culture of mining companies in Indonesia,” she concluded.
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