The Riau Islands chapter of the National Asset Research Agency (BAPAN) has filed a complaint with investigators at the Ministry of Energy and Mineral Resources (ESDM), alleging years-long illegal bauxite mining operation in West Kalimantan and illicit sales routed through Riau Islands.

The report was submitted on Wednesday, December 3, 2025 by Ahmad Iskandar Tanjung, who represents BAPAN Riau Islands. He said the complaint aims to ensure that law enforcement proceeds transparently and fairly.

“We filed this report because these activities have caused massive financial losses to the state,” Ahmad said in Jakarta.

According to BAPAN’s findings, bauxite mines in Sanggau, West Kalimantan, have allegedly been operating without proper permits for years. Ahmad said data received from local sources indicates that the extraction was carried out by PT MKU and PT KBM, and that the extracted material was sold to PT BAE in Bintan.

“All three companies belong to the same owner, a man named Santoni,” he claimed.

Ahmad also said investigators found no evidence of mandatory reclamation guarantees, post-mining reports, or other technical documentation required under Indonesia’s mineral and coal mining regulations.

BAPAN alleges the mining activity has continued uninterrupted, including as recently as earlier this week.

“I visited Sanggau on Tuesday. The mine was still operating,” Ahmad said.

He added that the suspected illegal operations dated back as far as 2008, with no recorded active mining permits from the ESDM ministry in recent years.
“There was no investment recorded for these companies from 2023 to 2025,” he noted.

State losses

BAPAN estimates that losses to the state could reach hundreds of billions to trillions of rupiah, factoring in the duration of operations and potential production volumes. Ahmad also questioned the role of port authorities in West Kalimantan.

“What was the port authorities’ justification for approving shipments?” Ahmad asked.

He criticized what he viewed as a lack of action from regional authorities and law enforcement.
“Where is the West Kalimantan police chief? Where is the governor? These questions must be answered,” Ahmad said.

Beyond financial losses, Ahmad warned that unregulated mining poses significant environmental risks, citing recent severe floods in Sumatra as an example of what can happen when forest cover is lost.

“Trees above the mining pit are surely cut down. Water absorption disappears. That triggers disasters,” he said.

He stressed that communities do not want similar environmental crises to spread to other regions.
“We want to protect Indonesia from preventable disasters,” he said.

Ahmad said Wednesday’s filing is only the first step. BAPAN plans to bring additional reports to the Attorney General’s Office task force and the Presidential Palace.

Environmental groups, he added, are also prepared to support the investigation.
“We are coordinating with many national environmental NGOs. They are ready to speak out,” he said.

He warned that if authorities fail to respond, BAPAN will make its findings public. “We are ready to release everything. We want the law enforced,” he said.

Ahmad also directed an appeal to President Prabowo Subianto, urging strong oversight against powerful actors allegedly involved in illegal mining.
“The President has said: whoever they are, even a general act firmly,” Ahmad said.

Mineral governance

The report adds new urgency to longstanding concerns over mineral governance in West Kalimantan, where illegal mining, regulatory loopholes, and environmental destruction have frequently drawn controversy.

Government agencies and law enforcement bodies are now under pressure to verify the claims and take corrective action.

“This is not a small mine. It is massive. The state must show its presence,” Ahmad said.