11 21 environment" for future generations. When legal and regulatory structures are weak, communities residing near illegal mining sites tend to experience uncertainty, social conflict, and the deterioration of local social institutions. 2.2 Legal Framework in Indonesia In Indonesia, several regulations govern mineral and coal mining permits, including: • Mineral and Coal Mining Law (such as Law No. 3 of 2020): This law regulates mining permits and reclamation. However, in practice, there are gaps in implementation, particularly regarding illegal mining activities that are difficult to monitor. • Environmental Regulations (such as Law No. 32 of 2009): This law governs environmental protection, sanctions for violations, and the mandatory obligation for reclamation and restoration. Numerous studies have highlighted weaknesses in this area, specifically regarding enforcement, oversight, and the lack of effective sanctions. • Government Regulation No. 39 of 2025 (Amendment to PP 96/2021): This regulation stipulates that cooperatives and Small and Medium Enterprises (SMEs) are permitted to manage Mining Business Permit Areas (WIUP) for metallic minerals or coal. 3. ENVIRONMENTAL AND SOCIAL IMPACTS Illegal and informal mining operations disregard environmental and social aspects, as these activities do not conduct reclamation or provide post-mining guarantees once extraction is completed. This lack of accountability leads to severe consequences if not properly addressed. Figure 1 – Distribution of Illegal Mining in Indonesia 3.1 Environmental Impacts Informal and illegal mining activities lead to significant environmental degradation, including: 1. Water Pollution and Quality Degradation Illegal mining causes a drastic decline in water quality through the direct discharge of toxic waste into rivers, such as mercury (Hg), cyanide, and high levels of sediment. These activities result in turbid and acidic water contaminated with heavy
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