MEMR launches first auction of bauxite stockpiles seized in law enforcement actions

By Romel S. Gurky

Indonesia’s Ministry of Energy and Mineral Resources (MEMR) has launched its first open auction of bauxite stockpiles seized by the state following law enforcement actions, in a move aimed at boosting non-tax state revenue from the mining sector, the ministry said on Tuesday.

The auction, conducted through the government’s lelang.go.id platform, covers more than 629,000 metric tons of bauxite stockpiled in the Riau Islands. Bid submission opened on Dec. 16 and will run until Dec. 22, with the winner to be determined at the Batam Office of State Assets and Auction Services (KPKNL) in Batam.

The auction is being carried out by the Directorate General of Law Enforcement at the MEMR and marks the first time mineral stockpiles designated as state property after enforcement actions have been sold through an open public auction.

Director General of Law Enforcement Jeffri Huwae said the move follows the mandate of Article 199J of Government Regulation No. 39 of 2025, which amends rules governing mineral and coal mining business activities.

Read also: Indonesia’s bauxite industry still struggling to advance downstream development

Under the regulation, mineral stockpiles discovered and taken over by the state through enforcement actions — including bauxite, coal, nickel and other commodities — can be auctioned, with proceeds recorded as non-tax state revenue (PNBP) in the energy and mineral resources sector, Jeffri said.

The ministry estimates the bauxite auction could contribute more than Rp200 billion to state revenue and said it remains confident that total PNBP in 2025 will meet the Rp254 trillion target set out in the state budget.

Jeffri said the auction would help establish legal certainty for mineral assets originating from residual or illegal mining activities and demonstrate transparency and accountability in natural resource management.

“The process is fair and open, and we invite all qualified parties to participate,” he said.

The auction is being carried out in coordination with the Finance Ministry, involving the Directorate General of State Assets (DJKN), its regional office covering Riau, West Sumatra and the Riau Islands, as well as the Batam Office of State Assets and Auction Services.

Editing by Reiner Simanjuntak