There are two types of ASGMs in Indonesia: one is licensed ASGM and the other is unlicensed ASGM. Most ASGM activity in Indonesia still operates illegally, because they do not possess a license permit from the government. Illegal ASGM is considered detrimental to the state because they are unlicensed, do not pay royalties, cannot be regulated, and contribute to damage to the environment, as well as adverse health impacts caused by the use of mercury
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