Indonesia

With regards to ASM in Indonesia, many argue that officially recorded employment data does not represent the actual figure. The Central Bureau of Statistics reported in 2018 national employment in the mining sector (inclusive of LSM & ASM) was 1,454,256. Delve considers an estimated figure calculated by Gatot Sugiharto, Head of Association of Community Miners Indonesia [Asosiasi Penambang Rakyat Indonesia (APRI)] of 3,600,000 from a 2020 interview as the most recent available figure, but recognizes the lack of official data as a critical impediment to the sector's development.

The absence of official data is due to various factors, but principally due to the fact that many ASM activities are conducted without a license. There are three probable main causes for the low level of legalization: (i) complex and inefficient formalization mechanism; (ii) ASM is not a priority issue for the government; and (iii) lack of managerial skills, capital, and environmental management exerted by the ASM operators (Miharja, Setyo and Hadi 2015). Other factors include seasonal participation in the sector and the migration of miners (outflux of local miners and influx of non-local miners), who mainly look for new reserves.

The trend in ASM employment showed an increase over the period of 2006 – 2013, with a fourfold increase from 2006 to 2010. Such sharp increase was the result of an economic crisis (Ismawati 2010). During this period, working in ASM was a quick solution for people who were discharged from their formal job due to the crisis. Moreover, the escalating gold prices during the same period gave way to the opening of more ASGM locations (nearly doubling) and triggered new miners to become active.

Read more in the Indonesia Country Profile.

In Indonesia, official gender-segregated data in the ASM work force is unavailable, however, female presence and involvement in ASM activities have been recorded in various studies. A study conducted in 2003, indicated that 10% of the total ASM workforce in Indonesia were women (Hentschel, Hruschka, and Priester 2002). In their report on health and environmental assessment in two ASGM sites in North Sulawesi and Central Kalimantan, Bose-O'Reilly and others (2010) recorded that few women were involved in mining activities. In Tewang Pajangan Village, Central Kalimantan, a survey found that 15 out of 240 miners (6.35%) were women (Sim 2019).

The roles of women in Indonesia’s ASM communities have changed over time (Aspinall 2001). Women were involved in ASM activities in North Sulawesi for instance, through supporting roles, whether as cook, “healer”, or “mother” of the young workers. Nowadays, women’s roles are more varied, not only in supporting roles (including the food vendors), but also in the direct mining activities as miners, ore crushers, pit owners, and landowners.

Read more about gender gaps, gender roles in society, and initiatives to improve gender equality in the Indonesia Country Profile.

There is no doubt that good mining practices are imperative for improved safety, health and environment status. However, lack of capital and the urgency to make ends meet can easily drive people to find an immediate viable solution to make money while dismissing safety, health and environmental safeguards. Consequences of the absence of proper mining procedures include higher risks of accidents, lack of quality control, and negligence of the principles of sustainability. (Eka 2019; Media Indonesia 2019; Sanusi 2019; Azkia 2018; Jejak Rekam 2017).

Miners in the ASM sector cannot be seen as a homogenous group. Some consciously choose ASM as their main economic generating activity – these miners commonly have sufficient capital and are more aware of risk management, while others are driven by the need to make ends meet – these are usually the individuals who operate without a permit and do not have the resources to comply with good mining practices. They implement mining activities using non-standardized Personal Protective Equipment (PPE) and rarely employ environmentally friendly techniques in conducting their work.

Read more about use of PPE, exposure to mercury and health assessments in the Indonesia Country Profile.

Sandstone

Sandstone mining in Indonesia has been conducted for decades. Operations are commonly small-scale and sporadic, thus, it is difficult to obtain official data on the activities. Similar to other commodities in ASM, sandstone mining is also commonly conducted without license. Take, for instance, those in Kuantas Singingi District, Riau Province (Siburian 2016) and Plosoklaten Sub-district, Kediri District, Central Java Province (Bahroni 2018). Sandstone miners in both areas are reluctant to apply for license due to the perceived complicated administration process. The obligation to pay taxes that entails with license issuance is also considered as burdensome, as sandstone mining does not provide miners with high income (Bahroni 2018). Read more in the Indonesia Country Profile.

Gold

ASGM activities can be found across Indonesia. In 2013, the Blacksmith Institute and Yayasan Tambuhak Sinta estimated that more than 300,000 people are directly employed by ASGM (Blacksmith and YTS 2013, 5). Today, ASGM in Indonesia produces USD 5 billion in gold a year, accounting for about 7% of total national gold production (McGrew 2016). In 2017 urban artisanal gold miners in Makassar, South Sulawesi had an average income of USD 265/month (USD ~9/day). Their income was slightly higher than the income of ASGM workers in Kalimantan, who earned around USD 74–223/month. Most of the gold workers had low education levels, having only attended elementary, junior, and senior high school, and none had graduated from university (Abbas and others 2017). One of the main concerns of ASGM activities is the high level of mercury contamination in the mine sites and the surrounding periphery, as indicated by the multiple studies that have found elevated levels of mercury in peoples’ hair at ASGM sites (Castilhos and others 2006; Bose-O'Reilly and others 2010; Krisnayanti and others 2012). Read more in the Indonesia Country Profile.

Tin

The term commonly used in Indonesia to describe the activities with regards to the tin community mining is TI (Tambang Inkonvensional, literally translated as unconventional mining). Most commonly they are practiced sporadically in tin-rich areas without a proper license. The islands of Bangka, Singkep and Belitung are the main producers of tin (Sutedjo 2007). Although a decline in tin production was experienced in recent years, this sector has contributed greatly to the regional economy since the Bangka Belitung province was established in 2001. During a 2010 study, it was estimated that there were around 10,000 operations across Bangka-Belitung providing a livelihood for 50,000 people with 80% of Indonesian tin exports coming from artisanal mines (International Tin Association 2018). Read more in the Indonesia Country Profile.

Coal

As in the case of LSM, most of the coal community mining is mainly found in South and East Kalimantan. Often enough, the unlicensed ASM activities in both provinces are very problematic since they are held responsible for various issues; i.e., breach in the law, environmental degradation and occupational accidents (Utama 2019; Apahabar 2019; Katadata 2019; Utama 2019; Yovanda 2019; Pewarta Kalsel 2012). These activities are conducted on individually owned land (often during land clearing), by renting people's land, using palm oil licenses or collaborating with legal mining operations (Katadata 2019). The high number of unlicensed mining operations in East and South Kalimantan is believed to be enabled by the weak law enforcement, lenient monitoring by the mine inspectors and the excessive issuance of IUP licenses (before the clean and clear policy was implemented) (Katadata 2019). Estimated employment for the artisanal coal sector from a 2001 study estimates 20,000 people are directly employed in the sector (Aspinall 2001). Read more in the Indonesia Country Profile.

Diamond

Diamond mining in Indonesia is mainly located in South Kalimantan, more specifically in Cempaka, Tiung River, Bangka and Salam, employing a total of around 1,000 individuals involved in mining activities in these areas (Azkia 2018 citing Media Indonesia 2011). Pumpung Village, Cempaka Subdistrict, Banjarbaru, South Kalimantan is said to be the main producer of diamonds that are sold in Martapura, a market known as having some of the best diamonds in the world (Media Indonesia 2019). The mining area covers more than 2,000 ha. Read more in the Indonesia Country Profile.

Indonesia has made tremendous progress in poverty reduction during the past 20 years. The mineral sector, which plays a crucial role in the country’s economy, contributes to the development of several remote regions in Indonesia. Developing the ASM subsector and achieving the SDGs involves both dynamic processes of transformation for Indonesian society and creating opportunities to build a sustainable and innovative economy. Data and information exist to demonstrate the contribution of ASM to achieving SDGs 1, 2, 8, 10, 17 in Indonesia, including poverty reduction, employment and partnerships revitalization. Formalization efforts can help leverage these contributions and reduce the many challenges facing the sector, including miners' working conditions and environmental degradation.

Read more in the Indonesia Country Profile.

Mining Stratification

Within the Indonesian context, ASM can be described as labor-intensive, small-scale, non-mechanized mining operations. ASM activities are considered equally important as LSM, due to the large number of employment opportunities they provide while the two often operate side by side. In Indonesia, there has been no consensus in the term(s) used to define ASM activities. PETI “Pertambangan Emas Tanpa Izin” (Non-licensed gold mining) or PESK “Pertambangan Emas Skala Kecil” (Small-Scale gold mining) are commonly used when referring to artisanal and small-scale gold mining (ASGM). “Unconventional” mining is used when discussing about tin mining. “Pertambangan rakyat” (people’s mining) was used in legal documents (Laws, regulations, etc.) to discuss and define a mining area (WPR) and permit (IPR). The term “people’s mining” can refer to all types of minerals, non-minerals and rock extracting activities. Read more in the Indonesia Country Profile.

Mining Formalization Regulations (ASM focus)

ASM operators have the obligation to hold a license, operate in designated areas, but no clear licensing mechanism is defined (IGF 2017). Acquiring licenses and environmental permits also involves high cost and a heavy bureaucracy for artisanal miners who want to comply with regulatory requirements (IGF 2017). The bureaucratic process to obtain a license was considered as being costly and time-consuming, thus, discouraging application (Lestari 2013). Actually, the requirements to legitimate the obtainment of a license (IPR) are nearly impossible for the community miners to meet (Miharja, Setyo and Hadi 2015). Decentralization is also seen as an important factor in the growth of illegal ASM in the country (Bansah et al 2016) There is a lack of institutional and technical assistance in ASM; thus, impacts of the activity cannot be easily assessed and compliance is difficult to enforce (Sousa and others 2011). A number of grassroot initiatives to formalize ASM activities are becoming more evident as there is increased recognition in the sector’s potential to contribute to subnational development and state revenue collection. Read more in the Indonesia Country Profile.

Laws and Policy

Mining Law No.11/1967

Mining Law No.4/2009

Government Regulation No.22/2010

Mining Law No.3/2020

Read more in the Indonesia Country Profile.