Government Revokes Thousands of Mining Business Licenses: How Many Were There in Total?

The Indonesian government revoked thousands of mining business licenses (IUP). Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif explained that the decision to revoke these IUPs was in accordance with President Joko Widodo's directives during a limited meeting (ratas) in January 2022.

A total of 2,343 IUPs were deemed inactive, with 2,078 of them failing to implement their company's work and budget plan (RKAB). Those who did not submit an RKAB were targeted for revocation.

Previously, *Katadata* reported that Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia was the party revoking the IUPs. The BKPM was mandated to revoke IUPs from January to November 2022.

Of the 2,078 IUPs targeted for revocation by the BKPM, only 2,051 were actually revoked. This figure comprises 1,749 mineral IUPs and 302 coal IUPs, based on the revocation decree.

Meanwhile, 27 IUPs were not revoked: 8 in Aceh due to special autonomy, 12 for rock IUPs due to gubernatorial authority, 1 asphalt IUP due to presidential policy, 2 IUPs that had expired, and 4 IUPs that had been revoked twice.

(Read also: [This is the Trend of Reclamation Realization of Former Mining Land in the Last 6 Years](https://databoks.katadata.co.id/datapublish/2024/01/21/ini-tren-realisasi-reklamasi-lahan-bekas-tambang-6-tahun-terakhir))

"As of March 14, 2024, 585 IUP revocations by the BKPM have been cancelled. This consists of 499 mineral IUPs and 86 coal IUPs, but only 469 IUPs have been included in MODI-MOMi. Four IUPs are in the process of being included in MODI-MOMi, and 112 cannot be included yet due to outstanding Non-Tax State Revenue (PNBP) payment obligations," said Arifin in a Working Meeting with Commission VII of the DPR RI on Tuesday (March 19, 2024).

Based on data from Indonesia's *one data* minerba (MODI) of the Ministry of ESDM, the number of IUPs in Indonesia fluctuates annually. In 2015, the number soared to 10,092 IUPs.

After that year, the number consistently decreased, reaching a low of 3,161 IUPs in 2019. However, permits increased again from 2020 to March 20, 2024, reaching 4,135 permits.

Revocation Regulations

In his presentation, Arifin explained that this revocation period ran from August 2022 to February 2024. Arifin stated that two main reasons led the government to revoke the mining companies' IUPs.

"Companies are considered to have not submitted RKAB until 2021, or companies are considered bankrupt. However, the land and investment arrangement task force still provides room to revive the revoked IUPs through the procedure of filing an objection to the revocation," he said.

Referring to Article 119 of Law Number 3 of 2020, it is stated that mineral and coal mining permits can be revoked by the minister if the IUP or IUPK holder does not fulfill the obligations and provisions of the law.

One of the obligations is to submit an annual RKAB. If the company does not do so, it is considered inactive and may be subject to sanctions in the form of administrative license revocation. In addition, IUP and IUPK holders can be said to have committed criminal acts as referred to in this Law, or the IUP/IUPK holder is declared bankrupt.

(Read *Katadata*: [Thousands of Mining IUPs Revoked, ESDM: Bankrupt and Did Not Submit RKAB](https://katadata.co.id/berita/energi/65f97a1fef90a/ribuan-iup-pertambangan-dicabut-esdm-pailit-dan-tak-sampaikan-rkab?page=2))