President Joko Widodo announced the revocation of 2.078 mineral and coal Mining Business Permits (Izin Usaha Pertambangan/IUP) because the IUP holders never submitted their work plans (Rencana Kerja dan Anggaran Biaya/RKAB) even though the permits had been granted for years. Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia stated that the revocation of IUPs for 2.078 mining companies in Indonesia was carried out starting January 2022, following Presidential Decree No. 1 of 2022 concerning the Task Force for Land Use Management and Investment Management (Satuan Tugas Penataan Penggunaan Lahan dan Penataan Investasi) as applicable regulation in Indonesia. The government will transfer the revoked licenses to entrepreneurs who have the capability and integrity as well as sufficient capital to manage the IUP, including Regional Owned Enterprises, community organizations/groups, Small and Medium Enterprises, and cooperatives in the region, providing an investment opportunity in Indonesia. Furthermore, in accordance with Mining Law and related laws in Indonesia, an IUP or Special Mining Business Permits (Izin Usaha Pertambangan Khusus/IUPK) can be revoked by the Ministry of Energy and Mineral Resources if the IUP or IUPK holders:
- do not fulfil the obligations stipulated in the IUP or IUPK as well as the provisions of the law and regulations;
- commit a crime as defined in Mining Law; or
- declared bankruptcy.
Author: Dewi Susanti