Good Or Bad News? Bahlil Says 2.078 Mining Business Permits Revoked Starting Today

Investment Minister Bahlil Lahadalia. (Mary Handayani/VOI)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said there were 2.078 Mining Business Permits (IUPs) that would be revoked in stages starting Monday, January 10.

Bahlil conveyed this at a press conference, Friday, January 7, at the office of the Ministry of Investment/BKPM, Jakarta. The thousands of IUPs that will be revoked, said Bahlil, are caused by companies that have obtained these permits, but have not yet started operating. He noted that currently there are 5.490 IUPs issued by the government for mining businesses in Indonesia.

"IUP for mining business is 5,490 company permits. Now 2.078 are going to be revoked. That means almost 40 percent of the permits are useless," Bahlil explained.

The revocation of this permit will be carried out in stages starting this Monday. Bahlil said that his party targets the revocation of the permit to be completed by the end of this month.

Although mining businesses dominate the number of companies whose licenses will be revoked, there are a number of other sectors that are considered problematic or "rogue" by the government, based on in-depth review and study. The total number of IUPs that are planned to be revoked are 2.343 permits from mining businesses, and 2.078 of them will be revoked in the first phase.

In addition, there are 193 business permits in the forestry sector that are planned to be revoked. The reasons for the revocation vary, ranging from businesses that are not operating to those who mortgage their business licenses in banking.

"There is a permit given but the person is not clear. There is a permit given but someone else is looking for someone to sell the permit. It can't be like this, we have to talk about the context of justice," said Bahlil.

Once revoked, the business management license will be transferred to a group of entrepreneurs, more credible companies, and the community. Community groups that will have the potential to get a business management permit include religious organizations, cooperatives, Regional-owned Enterprises (BUMD), and many more.

Bahlil said that in the future there will be stricter supervision of businesses that have obtained permits from the government. This is done to ensure that the license granted to a company can be used and utilized in accordance with the purpose of granting the permit.

"The arrangement is carried out by tightening the conditions and field reports. Even if the conditions are still available on paper. But, if the field reports, what is seen, that must be done," he explained.