Conference Proceedings - World Mining Congress 2026

967 socio-economic issues, where illegal mining often serves as the primary alternative for meeting daily needs. Beyond the scarcity of jobs, high unemployment rates and economic hardship force residents to seek instant income, despite its illegal status. For many living near mining areas, this activity is perceived as the fastest way out of poverty, even though it carries high risks to their lives. This phenomenon continues to proliferate due to weak supervision and law enforcement, often supported by local economic actors. 4. Limitations in Reclamation and Restoration Technology In many cases of illegal mining, there is no formal obligation for reclamation, and minedout lands are simply left abandoned. Another contributing factor is that the technology required for reclamation is often unavailable or unaffordable for local residents. Without official permits, illegal miners are not bound by mining regulations (such as the Minerba Law No. 3 of 2020) that mandate reclamation and the provision of guarantee funds. Consequently, the environment bears long-term negative impacts. The following are key points regarding this condition: • Abandoned and Hazardous Land: Thousands of former mining pits (particularly for coal and gold) are left gaping open, endangering public safety and devastating ecosystems. • Environmental Damage Due to Lack of Reclamation. • Acid Mine Drainage (AMD): Abandoned mining areas become sources of heavy metal pollution and acid mine drainage, which contaminates groundwater and rivers. • Erosion and Landslides: Land that is not restructured leads to erosion, a decline in soil productivity, and an increased risk of landslides. 5. Corruption and Local Politics Rogue officials are frequently involved in unlicensed mining (PETI) networks, significantly undermining law enforcement. This is exemplified by rent-seeking practices from various parties linked to illegal operations. Corruption and local political dynamics serve as primary structural factors that perpetuate illegal mining in Indonesia. These unlicensed activities do not only involve small-scale miners but are often supported by mining mafia networks involving rogue law enforcement officers, local government officials, and political party figures. Local officials (such as regional heads) who require substantial funding for regional elections (Pilkada) often receive financial backing from mining entrepreneurs. In exchange, these donors are granted ease of licensing or "intentional neglect" of their illegal activities. Consequently, illegal mining frequently becomes an unofficial funding source to maintain local political power, creating a vicious cycle where illegal mining sustains political elites, and in return, those elites provide protection for illegal mining operations. 5. CASE STUDIES IN INDONESIA AND MITIGATION EFFORTS The following are case studies related to illegal and informal mining activities in Indonesia: • Illegal Gold Mining in Jambi. Illegal gold mining activities in Jambi are widespread, primarily concentrated in the upstream river areas of several regencies, including Sarolangun, Bungo, and Tebo. This mining causes significant environmental damage and frequently results in fatal incidents. These activities lead to serious environmental and social impacts, such as declining water quality, altered landscapes (due to land clearing and erosion), and socio-economic consequences, specifically the decreased productivity of agricultural land surrounding the mines due to waste contamination. The government and law enforcement agencies, such as the Jambi Regional Police (Polda Jambi) and joint task forces, continuously strive to eradicate these activities through patrols, arrests, and the destruction of heavy machinery and mining rafts on-site. Furthermore, the government is currently formulating long-term solutions, including the proposed establishment of People’s Mining Areas (WPR) to manage small-scale mining legally.

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