The Indonesian Mining Association aka the Indonesia Mining Association (IMA) highlighted the revocation of the Mining Business License (IUP) by the Minister of Investment/Head of the Investment Coordinating Board (BKPM). The Daily Executive Director of the Indonesian Mining Association (IMA) Executive, Djoko Widajatno, assessed that there was confusion in the revocation of the IUP by the Head of BKPM.

According to Djoko, the revocation of the authority to revoke the IUP should be in the hands of the Minister of Energy and Mineral Resources based on Law Number 3 of 2020 (UU Minerba), while the revocation of the IUP by the Head of BKPM/Minister of Investment is only based on the rules at the presidential decree level (keppres). ), namely Presidential Decree Number 1 of 2022 concerning the Task Force (Satgas) for Land Use Management and Investment Management.

"So the question becomes whether the Presidential Decree hierarchy has defeated the Act, this is what makes the decision ambiguous," said Djoko to Kontan.co.id (1/4). As is known, the Minister of Investment/Head of BKPM, Bahlil Lahadalia revoked 387 IUPs from February 2 to March 5, 2022. The revoked IUPs consist of 250 IUPs for mineral mining and 137 IUPs for coal mining.

Previously, the revocation of the IUP by the Minister of Investment/Head of BKPM was also questioned by Member of the Indonesian House of Representatives Commission VII Rico Sia in a Hearing Meeting with Commission VII DPR RI, last Thursday (31/1).

"This permit was issued by ESDM, but how could it be revoked by another ministry," Rico asked in RDP (31/3).

Rico's question was then responded to by the Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin, who was present at the RDP. Ridwan explained that currently all permits are centralized at BKPM through a one-door scheme or Online Single Submission (OSS).

In this context, Presidential Decree No. 1 of 2022 has been issued which establishes a task force for land use management and investment management.

"The members are the Minister of Energy and Mineral Resources, the Minister of ATR, and the Minister of LHK. In fact, it was the task force that revoked this task, in which the chairman of this task force was the Minister of Investment. So the revocation and arrangement mechanism is carried out by a task force formed through Presidential Decree Number 1 of 2022," explained Ridwan in the RDP (31/3).

A little information, Law Number 3 of 2020 does mention the revocation of IUP by the minister. Article 19 of Law Number 3 of 2020 states that an IUP or IUPK can be revoked by the Minister if the IUP or IUPK holder does not fulfill the obligations stipulated in the IUP or IUPK as well as the provisions of laws and regulations, the IUP or IUPK holder commits a criminal act as referred to in the Law. or the holder of an IUP or IUPK is declared bankrupt.