Legal Expert Values IUP Procedures For National Interest And Downstreaming

Illustration. Downstream green gold (Intermediate)

JAKARTA - Constitutional Law Expert Radian Syam assessed that the spirit of Presidential Decree Number 1 of 2022 concerning the Land Planning and Investment Planning Task Force was to reorganize the Mining Business License (IUP) in Indonesia.

He also considers it natural that in practice there are mining companies whose permits are revoked because they do not operate according to the provisions of the law.

"The government's intention through establishing a task force for national interests and downstreaming should not be misinterpreted," said Radian in a written statement, Friday, March 8.

Radian assessed that the revocation of the mining permit that was stalled by the task force should be appreciated. According to him, companies that will later obtain their permits will certainly become more productive.

"This task force not only helps reorganize mining, but also utilizes natural resources more effectively and efficiently, in accordance with its use for the economic interests of the Indonesian people and national interests," he said.

Legally, Radian explained that the task force was formed as an effort by the government to uphold the principle of transparency in decision making, because it involves various institutions and ministries. Radian also denied that there were parties who addressed all decisions of the task force reflecting the interests or benefits of the Minister of Investment/Head of BKPM Bahlil Lahadalia alone.

"The Bahlil step is a follow-up to the task force's decision, not an individual decision from the Minister of Investment," he continued.

At least, until now the Ministry of Investment has revoked 2,078 IUPs, consisting of 1,776 mineral mining companies, including metal minerals, non-metal minerals, and rocks as well as 302 coal mining companies.