PERHAPI urges government caution on Martabe takeover talk

PERHAPI urges government caution on Martabe takeover talk

The Indonesian Mining Experts Association (PERHAPI) has urged the government to proceed cautiously in any decision involving PT Agincourt Resources (PTAR), amid growing public speculation over a possible government takeover of the Martabe gold mine in North Sumatra.

PERHAPI Chairman Sudirman Widhy Hartono said discussions about a takeover remain premature, noting that PTAR operates under a Contract of Work (CoW) regime rather than a Mining Business Permit (IUP), as is often assumed.

“The termination of a mining Contract of Work cannot be carried out through a permit revocation mechanism, but must follow the contractual termination process itself,” Sudirman said.

Sudirman emphasized that PERHAPI, in principle, calls on all parties to respect the ongoing legal process. Should PTAR be found to have committed violations in mining operations or environmental management, he said the company should be formally reprimanded and sanctioned in accordance with prevailing laws and regulations.

“It should not automatically lead to a forced takeover, as widely reported in the media,” Sudirman told Petromindo.com on Monday (Feb. 2).

He added that taking over PTAR’s operations would not necessarily guarantee better mining or environmental management. Regardless of the outcome, PTAR and its shareholders should continue to receive fair and equitable treatment should a takeover ultimately be pursued.

Contract of Work still valid

According to Sudirman, to PERHAPI’s knowledge, the Ministry of Energy and Mineral Resources (ESDM) has not officially terminated PTAR’s Contract of Work to date.

“This means that as long as PTAR’s Contract of Work remains valid, a takeover of the Martabe mine cannot legally be carried out,” he said. Regarding speculation that the government may unilaterally terminate PTAR’s Contract of Work, PERHAPI warned that such a move could set a negative precedent for Indonesia’s overall mining investment climate.

Sudirman stressed that permit revocation or contract termination must adhere to the principles of due process of law under administrative law, as reflected in the General Principles of Good Governance (AUPB) and codified in Indonesia’s Administrative Governance Law. “Conceptually, revoking a permit or terminating a contract without proportional evaluation of the alleged violations, or without providing adequate opportunity for defense, could be classified as a procedurally and substantively flawed administrative action,” he said.

Any attempt to revoke a mining permit or terminate a Contract of Work, Sudirman noted, must follow proper legal procedures in accordance with the Mineral and Coal Mining Law and its implementing regulations. “As long as a Contract of Work holder or IUP holder conducts mining activities properly, has complete documentation, and complies with regulations, there is no justification for the government to revoke permits or terminate the Contract of Work,” Sudirman said. If violations are alleged—whether environmental or otherwise—he added, they must be substantiated through comprehensive assessments and strict causality analysis.

Sudirman acknowledged that findings by the Presidential Task Force for Forest Area Control (Satgas PKH) indicating potential environmental violations by PTAR could serve as an initial indication. However, he stressed that such allegations must be reinforced by scientific and technical studies that meet environmental liability standards. Companies subject to sanctions, he added, are entitled to be heard, including the right to submit clarifications and pursue administrative remedies.

The Ministry of Environment has filed a civil lawsuit against PTAR at the South Jakarta District Court, seeking compensation of up to Rp200 billion. The case, registered under No. 62/Pdt.Sus-LH/2026/PN JKT.SEL, relates to alleged environmental damage and pollution and has been on record since January 20, 2026.

“In our view, the ongoing legal process should be respected first. Any further action—especially termination of the mining Contract of Work or an operational takeover—should wait until a final and binding court ruling determines the appropriate sanctions,” Sudirman said.

Interestingly, Sudirman noted that PTAR has long been recognized for relatively strong environmental management practices. The company received a PROPER Green rating from the Ministry of Environment in February 2025 and was also awarded the Good Mining Practice Award by the Ministry of Energy and Mineral Resources.

PTAR is among 28 natural resource-based companies whose licences are reportedly under review following investigations by the Satgas PKH into alleged violations in forest areas linked to environmental degradation and hydrometeorological disasters in Aceh, North Sumatra and West Sumatra late last year. The government is also considering transferring the Martabe gold mine to a newly formed state-owned company, Perminas.

Sumber : https://www.petromindo.com/news/article/perhapi-urges-government-caution-on-martabe-takeover-talk