BPK Finds Minerba Mining Licensing Issues In BKPM

Illustration (Photo: Doc Antara)

JAKARTA - The Supreme Audit Agency (BPK) found a number of important problems in the management of mineral and coal mining licensing and forestry at the Ministry of Investment/Investment Coordinating Agency (BKPM).

"The problem includes inadequate supervision of periodic reports from business actors in the Online Single Submission Risk Based Approach (OSS RBA) system. This problem is quite crucial because it can hinder supervision of mining activities and provide inaccurate information to the public," said Member II BPK/Head of State Financial Audit II Daniel Lumban Tobing quoted from ANTARA, Thursday, September 19.

As a result of this problem, the profile of business actors in the mineral and coal mining sector is not fully updated from the aspect of assessing administrative compliance and technical compliance.

In addition, the selection of monitoring objects for the following year by the RBA OSS system did not go through the parameters of the compliance assessment of business actors.

"For this problem, BPK recommends the Minister of Investment/Head of BKPM, to implement the process of monitoring periodic reports and assessing administrative compliance according to the provisions," said Daniel.

The Ministry of Investment/BKPM is also required to make a joint agreement with the Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Environment and Forestry (LHK) to carry out supervision of business licensing through a comprehensive supervision subsystem that will be integrated by SSO through the supervision subsystem on the OSS RBA.

Another problem revealed by Member II of the BPK is that the reporting of investment activities is not fully adequate and the application of written warning sanctions has not been carried out in an orderly manner according to the provisions.

"This has resulted in data on investment realization in the forestry, metal and coal mineral sectors which are informed to the public that they are not reliable and can mislead stakeholders in making decisions," he said.

In this case, his party recommends the Minister of Investment/Head of BKPM to develop the Investment Activity Report (LKPM) feature in the OSS RBA monitoring subsystem which can provide accurate information regarding the value of investment realization and is able to send notifications to business actors who do not comply with LKPM reporting, as well as carry out guidance and supervision to business actors to fulfill the obligation to submit LKPM.