Jakarta, The Indonesia Post – The Ministry of Investment/Investment Coordination Agency (BKPM) has issued 180 letters of revocation of mineral and coal Mining Business Permits (IUPs) as firm action against companies that do not take advantage of the permits granted properly.
The revocation of 180 IUPs consisting of 112 mineral IUPs and 68 coal IUPs was signed directly by the Minister of Investment/Head of BKPM Bahlil Lahadalia. The revocation process has been carried out in stages since last January.
“So previously the Minister of Investment/Head of BKPM signed 19 letters of IUP revocation, then increased to 161 so that we have officially revoked a total of 180 IUPs,” said Deputy for Investment Controlling Implementation of the Ministry of Investment/BKPM Imam Soejoedi in a written statement in Jakarta, Tuesday.
A total of 180 revoked IUPs are owned by 165 business actors, both business entities and individuals, consisting of 68 business actors holding coal IUPs and 97 business actors holding mineral IUPs.
The majority of coal IUP revocations were carried out in the province of East Kalimantan with 34 IUPs (50 percent) owned by 34 business actors, while the majority of mineral IUP revocations were located in the Riau Archipelago with 17 IUP (15.18 percent) owned by eight business actors.
Imam emphasized the revocation of IUP to all companies that do not follow the applicable rules and are not only intended for certain groups. The revocation of the permit is also in accordance with the applicable regulations.
“We are not selective. Our goal is to fix permits that are not used properly. We will continue to revoke this IUP gradually,” he said.
The revocation of the permit is carried out based on Presidential Decree No. 1 of 2022 concerning the Land Use and Investment Arrangement Task Force which is the basis for the revocation of the mineral and coal IUP.
The task force is chaired by the Minister of Investment/Head of BKPM Bahlil Lahadalia, while the Minister of Energy and Mineral Resources (ESDM), the Minister of Environment and Forestry (LHK), and the Minister of Agrarian and Spatial Planning/Head of the National Land Agency (BPN) are appointed as Deputy Chairpersons. Task Force.
Furthermore, Imam explained that one of the tasks of the task force is to classify land and determine land use fairly in an effort to provide value for the welfare of the people.
In this case, the government will transfer the revoked license to entrepreneurs who have the capability and integrity, as well as sufficient capital to manage the IUP, including Regional Owned Enterprises (BUMD), community organizations/groups, Small and Medium Enterprises (UKM), and cooperatives in the region.
“As the Minister has often said, the purpose of this permit transfer is so that the permit can be managed by the responsible party, so that it can create added value, provide jobs, and distribute economic growth in the region,” said Imam.
Throughout 2022, the government is targeting to revoke 2,343 mineral and coal IUPs, which include mining permits for gold, nickel, cobalt, coal, manganese, and mineral C.
In addition, 192 forestry sector permits will be revoked (IPPKH, HPH, HTI) with a total area of 3,126,439 hectares, and Plantation HGUs with a total area of 34,448 hectares. (mhn/bbs)
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