PT Bulawan Daya Lestari's Mining Permit Has Not Yet Been Issued

Illustration (Photo: by Khusen Rustamov from Pixabay)

JAKARTA - PT Bulawan Daya Lestari (BDL) has had to stop gold mining activities in Bolaang Mongodow Regency, North Sulawesi since March 10, 2019. This is because the mine extension permit has not been issued.

The production operation mining business permit (IUP-OP) and forest area lease-to-use permit (IPPKH) covering an area of 99.06 hectares are issued by regional heads of the same class as governors. In this way, the governor must approve the extension of the permit.

BDL President Director Hadi Pandunata admitted that he was working on the extension of his company's IUP-OP and IPPKH. According to Hadi, with the expiration of the IPPKH IUP-OP, all BDL activities have been stopped. However, until now, the permit has not been issued.

"If the IUP-OP has been extended again, then mining activities will resume," said Hadi in his statement to the media, Monday (29/6/2020).

BDL is also in the process of extending the borrow-to-use forest area permit covering an area of 99.06 hectares from the Investment Coordinating Board (BKPM), whose validity period has expired since March 10, 2019.

"We also hope that this lease-to-use forest area permit can be approved by BKPM on behalf of the Indonesian Minister of Forestry," added Hadi.

Mining law expert Ahmad Redi assessed whether the company was right to stop mining activities. This is because Law Number 4 of 2009 concerning Mineral and Coal Mining (Minerba) contains very specific and explicit articles regarding the obligation to extend the operating license for all mining activities.

Article 158 states, every person conducting mining business without a permit such as a production operation mining business permit (IUP-OP) or a people's mining permit (IPR) will be subject to a maximum imprisonment of 10 years and a maximum fine of Rp. 10 billion.

Ahmad explained, if BDL is reckless to continue mining before extending the permit, automatically the activity is categorized as illegal mining or illegal mining.

"So if the IUP-OP on behalf of BDL has expired, it is mandatory to stop operations. If there are still those operating, they will definitely be subject to the illegal mining article, ”said Redi some time ago.

In order to avoid legal problems, Ahmad, who is also a law lecturer at Tarumanagara University, Jakarta, appealed to BDL to immediately apply for an extension of the IUP-OP to the North Sulawesi Provincial Government or the Ministry of Energy and Mineral Resources.

"It just remains to be seen, if BDL is a purely local owner or an Indonesian citizen, it is sufficient for the North Sulawesi Governor to handle the permit. But if there are foreign shares in BDL, then the permit must be issued by the Ministry of Energy and Mineral Resources, "he explained.

Separately, the former Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Bambang Gatot Ariyono, also mentioned that there is a ban on continuing gold mining if the IUP-OP has expired.

"If the permit expires, no activities are allowed there," said Bambang to reporters, Tuesday (30/6/2020).

Based on information, gold mining activities in the company are still ongoing today. The attorney for the Managing Director of PT Bulawan Daya Lestari, Boyce Alvan said, if there were mining activities there, there was no connection with the company.

"That means there is already a criminal act if it is true that there is still gold mining on BDL land," said Boyce.