Far East Gold Limited (ASX: FEG) (“Far East Gold” or “the Company”) has secured a critical regulatory milestone at its flagship Idenburg Gold Project in Papua, Indonesia, announcing PIPPIB approval over approximately 9,000 hectares of the project area.
The approval reclassifies the designated area to Production Forestry, removing a key regulatory barrier and providing a clear pathway to environmental permitting, operational licensing, and future mine development. The Company describes this as a pivotal moment that materially de-risks the project and validates its strategic potential as one of Indonesia’s premier emerging gold projects.
Understanding PIPPIB: Indonesia’s Forest Protection Framework
PIPPIB (Peta Indikatif Penundaan Pemberian Izin Baru) represents Indonesia’s Indicative Map for the Termination of the Issuance of Business Licenses. The framework was established under Presidential Instruction No. 5/2019 as part of Indonesia’s commitment to protecting primary natural forests and peatlands.
The system currently covers over 66 million hectares of primarily protected forest areas across Indonesia, where new concession licenses for activities including mining, palm oil, and other agricultural operations are strictly controlled.
Receiving PIPPIB approval means Far East Gold’s designated area has successfully transitioned through Indonesia’s rigorous forestry classification process. This reclassification to Production Forestry is a mandatory prerequisite for mining operations and represents months of coordination with Indonesian authorities.
Figure 1: Map showing prospect and resource areas within the Idenburg CoW tenement with PIPPIB reclassification areas highlighted in green
Strategic Location in World-Class Mineral Province
The Idenburg Project’s 95,280-hectare footprint sits within one of the world’s most prolific gold and copper belts. The project shares the Papua province with several world-class deposits that have produced extraordinary volumes of precious and base metals over decades:
- Grasberg Mine: Over 70 million ounces of gold and 30.8 billion pounds of copper in reserves, operated by Freeport-McMoRan
- Porgera Gold Mine: Over 20 million ounces of gold produced
- Frieda River Project: 20 million ounces of gold in resources
- Ok Tedi Mine: 20 million ounces of gold produced
The Idenburg Project is held under a 6th Generation Contract of Work (CoW), providing long-term security and favorable terms. The Company currently holds a JORC Inferred Resource of 540,000 ounces of gold at 4.1 g/t and 468,000 ounces of silver at 3.6 g/t across multiple prospects.
Direct access to infrastructure via the Trans-Papuan Highway enhances the project’s logistical efficiency and potential development timeline compared to many remote Indonesian exploration projects.
Unlocking the Core Development Corridor
The 9,000-hectare PIPPIB reclassification encompasses the core development corridor of the Idenburg Project. This strategic designation enables Far East Gold to:
- Advance seamlessly into AMDAL environmental permitting and subsequent mining approvals (IUP OP)
- Lock in long-term tenure security over key resource and infrastructure zones
- Fast-track the transition from exploration to development while maintaining compliance with Indonesian forestry and mining law
The approval covers critical areas including the Mahi, Bermol, Sua, and surrounding prospect zones where the Company has identified significant gold mineralisation through historical drilling and recent exploration activities.
The IUP OP (Mining Business License for Production Operations) represents the ultimate operational permit required for commercial mining in Indonesia, and the PIPPIB approval is an essential prerequisite for obtaining this licence.
Active Exploration Campaign Underway
Far East Gold is currently executing a multi-rig drilling program at the Idenburg Project, with 32 holes totalling 3,670 metres targeting expansion of high-grade gold zones. The drilling programme is focused on:
- North Bermol discovery: Testing the newly discovered high-grade zone with potential to expand the Bermol resource.
- Sua Prospect Extensions: Drilling to extend known mineralisation and upgrade resource classification.
- Resource Conversion: Infill drilling aimed at converting Inferred resources to Indicated category.
Previous exploration has identified several high-priority targets across the project area, with historical results including:
- Mahi: 2.9 g/t gold over 1.64 million tonnes
- North Bermol: Outcrop samples up to 36.8 g/t gold
- East Bermol: Outcrop samples up to 8.4 g/t gold
- Sua: 22 holes drilled for 3,629 metres with results including 7.5m at 16.0 g/t gold
The current 3,670 metre program represents a significant commitment to defining the full extent of mineralisation across the core development corridor now approved under PIPPIB.
Management Commentary
Managing Director and CEO Shane Menere welcomed the regulatory milestone:
“Securing the PIPPIB approval over 9,000 hectares of our Idenburg Project is a huge win for Far East Gold and the Idenburg flagship project. It removes a key regulatory barrier and allows us to move decisively into project development. This outcome further strengthens our position in one of the most prospective gold provinces globally and mirrors the successful pathway we followed at our Woyla Project.”
Figure 2: Shane Menere, CEO and Director, Far East Gold
The reference to Woyla is significant. Far East Gold previously navigated similar regulatory pathways at its Woyla Gold Project in Aceh Province, demonstrating the Company’s capability to work effectively within Indonesia’s mining regulatory framework.
Indonesian Gold Sector Context
Indonesia remains one of the world’s most prospective gold jurisdictions, with significant untapped potential across multiple provinces. However, navigating the country’s regulatory environment requires persistence, local expertise, and patience.
The PIPPIB framework, while adding complexity to the permitting process, provides long-term certainty once approvals are secured. Companies that successfully navigate these requirements gain access to some of the world’s highest-grade gold deposits in a mining-friendly jurisdiction with established infrastructure.
The Indonesian government has increasingly focused on balancing resource development with environmental protection, making PIPPIB approvals a critical validation of project viability and regulatory compliance.
Investor Outlook
Far East Gold (ASX: FEQ) trades at approximately A$0.140 per share as of 5th November 2025. The company has a market capitalisation of A$49.54 million with a 52-week range of A$0.110 – A$0.205.
Figure 3: Far East Gold Share Price Chart
The PIPPIB approval represents a material de-risking event for Far East Gold. The Company has systematically advanced the Idenburg Project from early-stage exploration through resource definition and now into the permitting phase required for development.
With the core development corridor now approved for Production Forestry designation, Far East Gold can accelerate environmental studies, engage more deeply with stakeholders, and advance toward production decision timeframes.
The Company’s dual-project strategy, with both Idenburg in Papua and Woyla in Aceh Province, provides portfolio diversification across two highly prospective Indonesian gold districts.
