Indonesia’s illegal mining crackdown draws scepticism

[JAKARTA] Indonesia rolled out a sweeping crackdown on illegal mining a week ago, giving the state power to seize and run rogue concessions, in what is billed as President Prabowo Subianto’s wider anti-corruption drive amid a politically charged climate.

The operation allows the state to take over illegal mining concessions and channel revenues directly into the national budget; but analysts and environmental groups caution it may yield only modest fiscal gains and little improvements in environmental protection.

In a report released on Sep 3, BMI, a unit of Fitch Solutions, said the campaign aligns with Prabowo’s “nominally aggressive approach to corruption”, but cautioned that it is unlikely to significantly curb illicit activity in the mining sector.