ESDM Auctions 629,000 Tons of Bauxite Stockpile, Potential State Revenue Reaches IDR 200 Billion
Tue 16 Dec 2025, 04:59 AM
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The Ministry of Energy and Mineral Resources (ESDM), through the Directorate General of Law Enforcement (Ditjen Gakkum), is auctioning state-controlled goods in the form of a stockpile of more than 629,000 metric tons (MT) of bauxite in the Riau Islands.
Director General of ESDM Law Enforcement Jeffri Huwae explained that the bauxite auction will contribute more than IDR 200 billion to state revenue.
Bids are open from 16–22 December 2025 and this marks the first bauxite stockpile auction conducted by the ESDM Ministry.
After the bidding period ends, the auction winner will be determined at the State Assets and Auction Service Office (KPKNL) in Batam.
He stated that the auction follows the mandate of Article 199J of Government Regulation No. 39/2025 on the Implementation of Mineral and Coal Mining Business Activities.
“If additional mineral stockpiles are found—whether bauxite, coal, nickel, or other commodities—law enforcement will be carried out by designating the goods as State-Controlled Assets to be auctioned. The proceeds will become non-tax state revenue (PNBP) for the ESDM sector,” Jeffri said in a written statement on Tuesday (16/12/2025).
With a potential IDR 200 billion boost to revenue, Jeffri is optimistic that the 2025 PNBP target of IDR 254 trillion can be met.
He claimed the auction provides legal certainty for state-controlled goods originating from residual mining business activities.
Jeffri emphasized that the auction will not only strengthen the sector’s contribution to the economy, but also serves as a form of transparency and accountability in natural resource management.
“The process is fair and open, so we invite all qualified parties to participate in this auction,” Jeffri said.
He also noted that the auction is being conducted by ESDM’s Ditjen Gakkum together with the Directorate General of State Assets (DJKN), the DJKN Regional Office for Riau, West Sumatra, and the Riau Islands, as well as KPKNL Batam.
As a note, Indonesia’s bauxite production has declined year after year. According to ESDM data, bauxite output in 2024 reached 16.8 million tons, down from 19.8 million tons in 2023 and 31.8 million tons in 2022.
Meanwhile, ESDM reports that Indonesia currently has 14 integrated mineral smelter projects with a total investment value of USD 8.69 billion (around IDR 144.02 trillion), dominated by the bauxite segment.
There are six integrated bauxite smelter projects underway with a combined investment of USD 2.18 billion.
The Director General of Minerals and Coal (Minerba) at ESDM, Tri Winarno, previously said that seven bauxite smelters remain stalled, with construction progress below 60%.
The six integrated refining facilities include: PT Dinamika Sejahtera Mandiri located in Sanggau, West Kalimantan; PT Laman Mining in Ketapang, West Kalimantan; and PT Kalbar Bumi Perkasa located in Sanggau, West Kalimantan.
There are also PT Parenggean Makmur Sejahtera in East Kotawaringin, Central Kalimantan; PT Persada Pratama Cemerlang in Sanggau, West Kalimantan; PT Quality Sukses Sejahtera in Pontianak, West Kalimantan; and PT Sumber Bumi Marau in Ketapang, West Kalimantan.
“Kalbar Bumi Perkasa has had its permit revoked,” he said in a meeting with Commission XII of the Indonesian House of Representatives (DPR RI) on Wednesday (30/4/2025).
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