Jakarta – In the context of land management, the government recently revoked 2,065 mining business permits (IUP), covering an area of 3.1 million hectares, according to the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia in a press conference, Friday (12 /8).
“Following President Joko Widodo’s directive, the (IUP) revocation of thousands of mining companies is caused by them not starting their business, even though they already have an IUP,” he said.
Lahadalia detailed that of the targeted 2,078 IUPs, 2,065 permits were revoked or 98.4% of a total of 3,107,708.3 hectares. The permits consist of 306 coal IUPs covering an area of 9,413 hectares, 307 tin IUPs covering an area of 445,352 hectares, and 106 nickel IUPs covering an area of 182,094 hectares.
Then, there are 71 gold IUPs covering an area of 544,708 hectares, 54 bauxite IUPs covering an area of 356,328 hectares and 18 copper IUPs covering an area of 70,663 hectares. In addition, 1,203 IUPs of other minerals (including soil, sand, gravel, marble, kaolin, granite or under Group C minerals) covering an area of 599,126 hectares were revoked.
Lahadalia said that out of a total of 2,078 IUPs that were revoked, the government provided the opportunity for entrepreneurs to object. So far, there have been more than 700 IUP objections. From the number of objections, the government is in the early stages of verifying the first 200 IUPs.
“From the first 200 IUPs that were verified, there are 75 to 80 permits that we will recover,” said Bahlil. He emphasized that if later during verification it is found that the permits are in production, or there is an error from the government, the government will make repairs accordingly.
Separately, the Daily Executive Director of the Indonesian Mining Association (IMA), Djoko Widajatno, expressed his disagreement with the revocation method without considering the cause of the inactivity. He said IUPs that are revoked generally have spent a lot of money on related permits.
Meanwhile, regarding the existence of IUP holders who guarantee their permits to banks, Widajatno said, generally they are responsible investors, since they sought funding from funders, banks and other financial institutions.
“If the business is guaranteed, it should be allowed, but minerals controlled by the state for the welfare of the nation cannot be guaranteed. But large companies can borrow money. There is discrimination here,” said Djoko. (Hartatik)
