Government Wants To Revise PP 96/2021, What Is The Urgency?

Illustration. (Photo: Doc. Antara)

JAKARTA - Investment Minister or Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed that the government will accelerate the revision of Government Regulation (PP) number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

In this regard, the Acting Executive Director of IMA, Djoko Widajatno, revealed several things related to the urgency or importance of the government accelerating the revision of this PP.

Djoko said, actually, when viewed from the parent law, the purpose of establishing PP aims to provide business guarantees and there is legal consistency for business actors who run their business in the mineral and coal fields.

"And another ease of doing business. Now the urgency is that we want to create revisions in order to facilitate business," Djoko said in the Mining Zone quoted on Thursday, March 21.

With ease of doing business, he said, this business can contribute to state revenue and create jobs.

"That is mandated by law so that we can prosper Indonesia," continued Djoko.

Regarding the revision timing that has only been carried out at this time, Djoko said this is because all mining problems that are currently happening are the accumulation of several problems from the previous year so that some mining permits need to get an extension earlier.

"Because the mining world is the first intensive capital. Both technologies. The technology is also still dependent from outside and buying from outside. The third is for infrastructure development, it will take up to 10-15 years," explained Djoko.

Therefore, according to him, if the mining business permit extension is carried out within 5 years before the IUP runs out, the permit cannot be done on time. "So he adjusts to the needs of the investment, the certainty of the investment.

Then also the implementation of infrastructure development in order to achieve the planned production, of course the most important planned production is to prioritize safety first, production follow. And the second EBIDA is still coming in, "concluded Djoko.

Previously, Bahlil revealed, after the revision of the PP, Indonesia would add share ownership in PT Freeport Indonesia (PTFI) to 61 percent, from the previous 51 percent.

"Once PP 96 is completed, God willing, if that happens, the potential for additional Freeport shares for the Republic of Indonesia, which will be 51 percent in the future, will be 61 percent, meaning that Freeport will no longer belong to other people, but ours because our shares are 61 percent," he said.

For information, Government Regulation Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities if it has not been revised, PTFI cannot be granted a Special Mining Business License (IUPK) faster. Because the mining extension requirements based on Article 109 Paragraph (4) can only be submitted to the Minister no later than 5 years or no later than 1 year before the end of the period of production operations.

On the other hand, PTFI's IUPK will only expire in 2041 so that Freeport can only apply for an extension of the permit in 2036 or no later than 2040.