Jakarta (The Indonesian News) — Indonesian President Prabowo Subianto has issued a stern warning to businesses holding mining concessions and other natural resource permits without making progress on their projects.
Addressing governors, regents, and mayors from across Indonesia, Prabowo said the government would no longer allow natural resource concessions to remain unused for decades without delivering tangible benefits to the country and its people.
He said he had instructed the minister of energy and mineral resources to revoke concessions that showed no meaningful activity for more than two years.
Prabowo delivered the remarks Thursday at the 2026 National Coordination Meeting of Regional Financial Access Acceleration Teams (TPAKD), organized by Indonesia’s Financial Services Authority (OJK) at the Grand Ballroom of the JIExpo Convention Center in Kemayoran, Jakarta.
“We must not hand out concessions too easily. We need to carefully assess whether the parties entrusted with managing them actually have the capacity to carry out the work,” he said, Thursday, October 22, 2026.
The president said several concessions had been awarded to companies but were never fully developed, with some remaining dormant for decades.
“The problem is that we have granted many concessions that have gone undeveloped for decades. We have already begun putting things in order,” he said.
Prabowo suggested that some businesses in the past had sought permits not because they had the expertise or readiness to develop mining operations, but simply to speculate for commercial gain.
“Perhaps some businesspeople previously speculated by applying for concessions. They were not mining experts and did not understand mining operations, yet they simply requested concessions. Once granted, those concessions were used for speculation or listed on stock exchanges. In the end, the country loses out because the concessions remain undeveloped for decades,” he said.
Prabowo warned that holding concessions without undertaking meaningful business activity could harm the state and prevent natural resources from being developed for the public good.
He therefore called for stricter reviews of companies that had received permits but had failed to demonstrate meaningful activity for more than two years, saying their concessions could be revoked.
“I have instructed the minister of energy and mineral resources: if there has been no meaningful activity for more than two years, revoke the concession!” Prabowo said.
One project highlighted by the president was the Abadi gas development in the Masela Block, located in Tanimbar Islands Regency, Maluku Province. The project, operated by Japanese energy company INPEX, has undergone a lengthy development process since its production-sharing contract began in 1998.
The project carries an estimated investment value of US$20 billion and is planned to include facilities for producing liquefied natural gas (LNG).
“There is a concession in Maluku the Masela project that has been held for 28 years. Nothing has been done for 28 years,” Prabowo said.
The president also recounted a visit to Japan during which he met directly with executives from the energy company involved in the Masela Block project.
He said the government was prepared to revoke the company’s rights to develop the project if it failed to demonstrate a serious commitment to moving forward.
“I flew to Japan and met with prominent figures there. I asked them respectfully and politely. As president, I have to be polite. I asked them directly: ‘Your Excellency, is Japan—specifically INPEX still interested in developing this project? If not, we will have no choice but to revoke the concession,’” he said.
For Prabowo, the issue is not merely a matter of relations between the government and investors. It also concerns Indonesians’ need for economic development and the productive use of the country’s energy resources.
He noted that many Indonesians still need jobs, better living standards, and economic opportunities that productive investment could create. INPEX, he added, had reportedly committed to accelerating the Masela Block project.
“Our people urgently need this. Many Indonesians are still struggling to make ends meet. God willing, INPEX representatives who attended the meeting yesterday promised that project activities would begin within six months. We will have to wait and see,” he said.
Source: Press Release of the Government Communications Agency of the Republic of Indonesia (Bakom RI)
