Central Java ESDM Gives Warning To IUP Holders, Don't Borrow Documents For Business Without Permit

Head of Mineral and Coal Division of the Central Java Energy and Mineral Resources Service Agus Sugiharto in Semarang, Wednesday (ANTARA/IC Senjaya)

SEMARANG - Central Java's Department of Energy and Mineral Resources (ESDM) reminded mining business license holders (IUP) not to abuse their legality documents for illegal mining practices and tax evasion. "Currently, legal action is being taken against permit holders who lend their documents for business activities without a permit," said Head of Mineral and Batuan Division of the Central Java ESDM Office Agus Sugiharto during the Illegal Mining FGD: Banyumas and Mining Tragedy in Indonesia in Semarang, Antara, Wednesday, September 20. According to him, law enforcement officials have begun to investigate allegations of tax evasion. The Department of Energy and Mineral Resources has provided various data related to the tax report of class C mining entrepreneurs. "We have been examined, it is difficult to convey tax report data," he said in a discussion held by the Central Java Indonesian Cyber Media Association (AMSI). The Department of Energy and Mineral Resources every three months holds a meeting with district/city Bapenda throughout Central Java to report mining production compared to tax revenues. Therefore, he warned the permit holders not to arbitrarily give mining permits. "The IUP was loaned to make a contract, while the production report did not match the contract made," he said. According to him, the potential for mining in Central Java, especially minerals for industrial needs and construction is quite large.

However, he said, throughout 2023 94 mining businesses were still found without a permit.