Enforcement OF IDR 38.6 Trilliom In Fines! Special Task Force Pursues 71 Palm Oil and Mining Companies, One Nickel Giant Files Appeal
NORTH MALUKU – A major wave of environmental law enforcement is shaking the business world. The Forest Area Management Task Force (Satgas PKH) has officially demanded a colossal fine of IDR 38.6 trillion from 71 palm oil and mining companies proven to have violated forest area regulations.
This move sends a strong signal that illegal land clearing practices will no longer be tolerated.
Breakdowns show that 49 palm oil plantation companies face a total fine of IDR 9.42 trillion, while 22 mining companies must pay IDR 29.2 trillion, highlighting the scale of violations in the extractive sector.
“Some have already paid, some have requested more time, and one company has filed an appeal,” stated Barita Simanjuntak, Spokesperson for Satgas PKH and also Head of the Attorney General’s Expert Team, in Jakarta on Saturday (12/13).
The company filing the appeal is PT Indonesia Weda Bay Industrial Park (IWIP), a nickel mining giant whose operational land in Central Halmahera Regency was seized and sealed on September 11, 2025.
This landmark sealing was carried out directly by the Indonesian National Armed Forces (TNI) Chief of General Staff, Lieutenant General Richard Tampubolon, alongside Deputy Attorney General for Special Crimes Febrie Adriansyah, following the discovery of 148.25 hectares of illegally cleared forest area.
The task force not only seized the land but also designated the area as state-controlled, imposed administrative fines, and planned the restoration of the damaged forest ecosystem.
TNI Chief of General Staff Richard Tampubolon emphasized that the entire enforcement process was measured and transparent.
“If permits are complete, handling is done in accordance with legal corridors. However, if violations are found, strict sanctions will certainly be imposed,” he stated. The main principle is legal certainty, without compromise.
Amid high tensions, a response emerged from IWIP’s shareholders. Eramet, a French company holding a 37.8% stake in IWIP, expressed caution. They acknowledged respect for the government’s decision and support for the company’s cooperation with the task force, while reaffirming their commitment to ensuring all operations meet legal standards.
IWIP itself is a major joint venture with shareholders comprising China’s Tsingshan Holding Group (51.2%), Eramet (37.8%), and PT Aneka Tambang Tbk (10%). Operating in Halmahera since 2019, the company holds permits until 2069 with an astounding annual production capacity of 52 million tons of nickel.
This case sets a precedent and serves as a real test for environmental law enforcement in Indonesia. On one hand, the state is showing its teeth through strong collaboration between the TNI, the Attorney General’s Office, and the task force. On the other hand, resistance from a company with global capital and influence like IWIP suggests a prolonged legal and lobbying battle may lie ahead.
While dialogue remains possible, the government’s message is clear: the era of “business as usual” at the expense of forests is over. The world is watching to see whether the IDR 38.6 trillion fine will be fully collected or lost in appeals and drawn-out legal processes.
