Firm! Government Revokes 2,078 Minerba Company Permits, Jokowi: Permits Granted But Not Executed

Photo: Presidential Secretariat Press Bureau

JAKARTA - The government continues to improve the management of natural resources so that there is equity, transparency and fairness, to correct inequality, injustice, and natural damage. The state's mining, forestry and land use permits continue to be thoroughly evaluated.

"We will revoke licenses that are not executed, that are not productive, that are transferred to other parties, and that are not in accordance with the designation and regulations," said President Joko Widodo in his statement at the Bogor Presidential Palace, Thursday, January 6, 2022.

As a start, the government has revoked 2,078 permits for mineral and coal mining companies (minerba) because they never submitted a work plan.

"Permits that have been given for years have not been carried out, this has led to the use of natural resources being held hostage to improve people's welfare," he added.

Second, today the government also revoked 192 forestry sector permits covering an area of 3,126,439 hectares. These permits were revoked for being inactive, not making a work plan, and being neglected.

Photo: Presidential Secretariat Press Bureau

Third, for the cultivation rights (HGU) for plantations that have been abandoned, covering an area of 34,448 hectares, they have also been revoked today. Of this area, as many as 25,128 hectares belong to 12 legal entities, the remaining 9,320 hectares are part of abandoned HGUs belonging to 24 legal entities.

The President said that reforming and controlling these permits was an integral part of improving the governance of granting mining and forestry permits, as well as other permits. The government continues to make improvements by providing transparent and accountable business license facilities, however, permits that are misused will definitely be revoked.

"We must hold the constitutional mandate that the earth and water and the natural resources contained therein are controlled by the state and used for the greatest benefit of the people," he explained.

At the same time, the government will provide opportunities for equal distribution of asset utilization for productive community groups and socio-religious organizations (including farmer groups, Islamic boarding schools, etc.), which can partner with credible and experienced companies.

"Indonesia is open to credible investors who have a good track record and reputation, and are committed to contributing to the welfare of the people and preserving nature," he said.

Also accompanying the President on the occasion were Minister of Energy and Mineral Resources Arifin Tasrif, Minister of Agrarian and Spatial Planning/Head of the National Land Agency Sofyan Djalil, Minister of Environment and Forestry Siti Nurbaya Bakar, and Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia.