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Investment minister revokes thousands of mining licenses

Tempo - August 12, 2022

Hendartyo Hanggi, Jakarta – Minister of Investment and Head of the Investment Coordinating Board Bahlil Lahadalia, revoked 2,065 Mining Business Licenses (IUP). The number represents 98.4 percent of the 2,078 IUP target.

"The total area [of IUP] that has been revoked amounts to 3,107,708.3 hectares accumulated from 2,065 licenses," Bahlil said in a press conference on Friday, August 12, 2022.

Out of the total number of revoked IUPs, as many as 306 IUPs, which cover 909,413 hectares of area in total, are coal licenses. As many as 307 IUPs, which cover 445,352 hectares of area in total, are tin licenses. As many as 106 IUPs, which cover 182,094 hectares of area in total, are nickel licenses, while as many as 71 IUPs cover 544,728 hectares of area in total.

Moreover, as many as 54 IUPs covering 356,328 hectares of area are bauxite licenses, and 18 IUPs that cover 70,663 hectares of area are copper licenses. Other minerals known as C category minerals were covered in 1,230 IUPs with a total area of 599,126 hectares.

Based on the total area coverage, most of the revoked IUPs cover West Kalimantan province, followed by East Kalimantan, Bangka Belitung Archipelago, and Papua.

However, based on the number of IUPs revoked, most of the revoked IUPs are those previously registered in Bangka Belitung Archipelago, which houses a large number of tin mining industry. The second largest number of IUPs revoked originated from West Kalimantan, which houses a large number of bauxite mines, followed by East Java, which houses a large number of C category mineral mining, Central Kalimantan, and East Kalimantan.

Bahlil said that the reorganization of licenses conducted by the Minister of Investment is not the same as the mining license dispute handled by the court. A mining area dispute usually covers matter related to a location that has more than one license registered. Meanwhile, in the context of the reorganization of licenses, the matters revolve around administration and factual issues.

Bahlil explained that factual issues mean that there are no apparent business activities within the location registered under a mining license. "That is the matter that we use as a reference to conduct assessment process which leads up to license revocation," Bahlik said. Nevertheless, Bahlid said that the Ministry of Investment provides opportunities for license holders who wanted to file an objection or restore the revoked license.

Source: https://en.tempo.co/read/1622140/investment-minister-revokes-thousands-of-mining-license