Indonesia’s government has reopened its review of the planned takeover of the Martabe gold mine in North Sumatra, reversing a previous decision to revoke the operating permit and transfer the asset to a state-owned company under the country’s sovereign wealth fund, Danantara Indonesia. Energy and Mineral Resources Minister Bahlil Lahadalia said President Prabowo Subianto instructed officials to reassess whether the mine had committed environmental violations and whether investor rights should be restored if no breaches were found. Bahlil emphasized that the mine’s permit has not been formally cancelled and that authorities are conducting a comprehensive evaluation to determine the appropriate action.
The Martabe mine, operated by PT Agincourt Resources, a unit linked to Astra International and majority-owned by Jardine Matheson Holdings Ltd, was among 28 companies whose licences were initially targeted for revocation following alleged environmental damage linked to last year’s floods and landslides. Jakarta had planned to hand the Martabe licence to the newly established state company Perusahaan Mineral Nasional (Perminas), but government statements now indicate that no transfer has taken place pending the results of the technical and environmental review.
Investors and environmental groups are closely monitoring developments, warning that the outcome could have broader implications for Indonesia’s business climate. Analysts note that how the government handles licence revocations and investor protections may influence both domestic and foreign confidence in property rights and natural-resource regulations in the country.