Meeting With Commission VII DPR, Minister Of Energy And Mineral Resources Explains Chronology Of Added Business Revocation By Bahlil

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Maria Trisnawati/VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif explained the chronology and reasons for the revocation of mining business licenses (IUP) by the Ministry of Investment/BKPM.

In a Working Meeting with Commission VII DPR RI, Arifin emphasized that the revocation of the IUP was in accordance with the direction of President Joko Widodo which was delivered through a Limited Meeting with the ministry in January 2022. In the meeting, in the years of the 5,490 IUPs recorded, 2,343 IUPs were deemed not active.

Arifin continued, referring to Article 119 of Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining, IUP can be revoked by the minister if the IUP holder does not fulfill the obligations stipulated in the IUP or IUPK as well as the provisions of the legislation.

"BKPM has the mandate to carry out the revocation from January to November 2022, but the government still provides room for an objection to the revocation of the IUP with the company's record that it can convey sufficient supporting data," Arifin said in a Working Meeting with Commission VII DPR RI, Tuesday 19 March.

Arifin continued, in the Ratas it was decided that 2078 IUPs would be revoked, 122 were given warnings, 60 IUPs were facilitated and 64 IUPs were further evaluated.

Then after being given the opportunity to show objections, Arifin said that the Investment Planning and Land Planning Task Force was verifying from April 2022 to November 2022 to 1,132 IUP holders who objected.

Through this verification, the Task Force then canceled 585 IUPs consisting of 499 mineral IUPs and 86 coal IUPs, but only 469 IUPs were included in MODI-MOMi.

"The remaining 4 IUPs for the MODI MOMI and 112 entry process have not been able to enter because they still have an obligation to settle PNBP payments," continued Arifin.

Arifin also emphasized that regarding the revocation data in question, the data on the revocation of the IUP by the BKPM at the Directorate General of Mineral and Coal was recapitulated based on an email notification from the BKPM to the company that was copied to the Directorate General of Mineral and Coal.

"The revocation of the IUP in the list of IUP revocations through a decree issued by the Minister of Investment and if there is a difference in the amount in the data on the revocation of the IUP between the Directorate General of Mineral and BKPM, it is possible for the Minister of Investment to revoke the IUP by the Minister of Investment, which has not or has not yet been sent through to the Directorate General of Mineral and Coal," concluded Arifin.