Indonesia’s illegal mining crackdown draws scepticism
Jakarta’s campaign allows the state to take over rogue concessions, but critics say weak governance could blunt fiscal and environmental goals
Add BT as a preferred source
[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.
TRENDING NOW
When every phone becomes a satellite phone, what happens to Asia’s telcos?
Koh Brothers Eco Engineering faces up to S$57.6 million in potential liabilities from legal disputes
Too little, too late? Manila’s billion-dollar bid to ignite its sputtering EV industry
DayOne secures S$530 million green loan from DBS, OCBC and UOB for Singapore data centre
