Government Mining Governance Assessed On The Track, Improvement Efforts Through Revocation Of Troubled IUPs

Mining illustration. (Between)

JAKARTA The government's efforts to organize the mining sector, including through the evaluation and revocation of the Mining Business License (IUP), are assessed by a number of experts that have been running according to legal principles and sustainability principles.

This improvement in governance is an affirmation of the country's commitment to ensuring that Minerba (Mineral and Coal) activities do not damage the environment and really contribute to the national economy.

Persada Bunda Indonesia University economist, Dr. Riyadi Mustofa, SE, MS, emphasized that controlling permits by the government is a step that creates legal certainty for obedient investors.

"All permits whose authority is at the center must carry out licensing integration. In the integration process, all permits are evaluated: whether they are worth continuing or not," Riyadi said in a public discussion entitled 'One Year Prabowo-Gibran Government From Angle of Energy View' was confiscated on Saturday, November 29.

He added, for companies that obey the rules, their business continuity is guaranteed. However, the government must ensure that the company has met all environmental security requirements.

"Those who obey continue. And that sustainability provides legal certainty. Because if environmental approval has been issued, it means legal. The community is also involved in the Amdal process through public consultations and commission assessments," he said.

In addition, the public policy expert at Sriwijaya University (UNSRI), Dr. Andries Lionardo, M.Si, also agreed that the policy direction of the Minerba sector was already towards improvement. The direction of improvement, he said, must include a balance of interests, not only in favor of entrepreneurs, but also in the people and producing regions.

"I see that this governance has indeed begun to be improved by the government. The policy direction has been there," explained Andries.

Furthermore, the professor of the Faculty of Engineering, Universitas Brawijaya, Prof. Ir. ING Wardana, M.Eng., Ph.D., assesses that the periodic IUP evaluation policy, for example every 10 years, is the right step.

"Evaluation every 10 years is important, because the mining cycle itself takes about 4'5 years to prepare. It's a realistic time to make sure the mine runs properly and sustainably," Wardana said.

According to a public communication expert at Riau University (UNRI), Chelsy Yesicha, M.Ikom, the government's main focus must always be on environmental and community impacts.

Permit evaluation measures, the revocation of problematic IUPs, and tightening of supervision are deemed necessary to continue to restore public trust and ward off negative narratives circulating in the community.

"We are talking about environmental sustainability for generations. Whether the permit is legal or illegal, but what has an impact on the environment and society, that is what needs to be considered," said Chelsy.

Troubled IUP Revocation

The concrete action of governance was clearly demonstrated by the government through the Task Force for Arrangement for the Use of Land and Investment Arrangement. The task force, which was then led by the former Minister of Investment/Head of BKPM, Bahlil Lahadalia, revoked thousands of IUPs which were considered problematic, not operating, or did not fulfill their obligations.

Bahlil emphasized that controlling unproductive permits is part of the state's efforts to ensure that natural resources are used for the greatest prosperity of the people, according to the mandate of the 1945 Constitution.

"The permits we revoke are unoperating permits. We have revoked more than 2,000 IUPs," said Bahlil Lahadalia.

He explained that the revoked permits varied, ranging from those who did not carry out executions in the field even though the Borrow-to-Use Forest Area Permit (IPPKH) had been issued, not making a Work Plan and Budget (RKAB), to permits that were deliberately resold by concession holders.

"Revocation of this permit without seeing who it belongs to or who it belongs to, no. We are orderly. The rules apply to all people, not for a certain group of people," said Bahlil.