Government Has Revoked 385 Mining Mining Permits for Mineral and Coal

The government through the Ministry of Investment/Investment Coordinating Board (BKPM) has revoked 385 mineral and coal Mining Business Permits (IUPs). This number is calculated from February 2 to March 5, 2022.

“Mining business permits that have been revoked by BKPM in the period from February 2 to March 5, are not 180 but have totaled 385,” said the Special Staff of the Minister of Energy and Mineral Resources for Mineral and Coal Mining Governance, Irwandy Arif in a Webinar organized by the National Council of Kahmi with the theme Peel off Completely. : Legality and Transparency of Revocation of Mining Business Licenses for Production Operations and Acceleration of the 2022 RKAB for the National Economic Recovery of the Minerba Sector after the Covid 19 Pandemic, Wednesday (16/3).

The permits consist of 248 IUPs for mineral commodities and 137 IUPs for coal commodities. The process of revocation, said Irwandy, was carried out not all at once, but in stages. “It was done gradually,” he said.

According to Irwandy, the revocation is in accordance with the applicable law, namely based on Article 119 of Law No. 3 of 2020 concerning Amendments to Law No. 4 of 2009 concerning Mineral and Coal Mining.

In the law, an IUP or IUPK can be revoked by the minister, among others, if the IUP or IUPK holder does not fulfill the obligations stipulated and the provisions of the legislation.

On the same occasion, Deputy Chairman of Commission VII DPR RI, Edy Suparno said that many IUPs were idle for a long time so that they did not have an economic impact on the country. Therefore, he considers the government’s action to revoke the IUP-IUP is the right step.

“There are so many permits that have been given, it turns out that there have never been any exploration activities, production activities while the permits were granted to certain parties for a long period of time. In fact, if we want to see the management of our natural resources, it must be given in the concept of arrangement, or at least in the concept of providing equal opportunities to all entrepreneurs,” he said.

According to Eddy, the phenomenon of collective revocation of IUPs is the result of the authority related to licensing, guidance and supervision that has been transferred to the central government.

“Indeed, this will later appear to cause a number of problems, but this is indeed the spirit of the Minerba Law No. 3 of 2020. Not only to centralize it, but the licensing process is well controlled, monitored and supervised,” he explained.

Previously, it was known that on January 6, 2022, President Joko Widodo revoked 2,078 mining IUPs that had no activities and did not submit the Work Plan and Budget (RKAB). Then on February 15, 2022, the Minister of Investment/Head of BKPM also revoked the problematic mineral and coal IUP with a total of 180 IUPs.