Head of the Land Use Management and Investment Management Task Force, Bahlil Lahadalia, revoked 1,118 Mining Business Permits (IUP) for minerals and coal. This figure is effective as of April 24, 2022.

"On April 24 we have signed 1118 licenses that have been revoked. Of the 1,118 IUPs, the total area that has been revoked is 2,707,443 hectares," Bahlil said in a press statement, quoted Tuesday (26/4).

Bahlil detailed that the 1,118 IUPs consist of 102 nickel IUPs, or the equivalent of 161,254 hectares. Then 271 coal IUPs or the equivalent of 914,136 hectares, 14 copper IUPs or the equivalent of 51,563 hectares.

Furthermore, 50 IUP bauxite or equivalent to 311,294 hectares, 237 IUP tin or equivalent to 374,031 hectares. Then there are 59 gold IUPs or the equivalent of 529,869 hectares and 385 other mineral IUPs or the equivalent of 365,296 hectares.

"Why is this permit revoked? because the government based on existing data, it is indicated that these IUPs were given to entrepreneurs but were not used properly. For example, this IUP is used for pawning at the bank, this is not allowed," he said.

Another case that often occurs in the field, said Bahlil, is that companies often trade IUPs. There are also companies that use IUP as collateral in the financial market without being properly implemented.

"This is the background. Because we hope that with this permit, we can refer to the process of accelerating economic growth, increasing downstreaming, and at the same time creating added value in new economic growth areas throughout the Republic of Indonesia," he explained.

Another reason that according to Bahlil many entrepreneurs do is that they already have an IUP but do not apply for a Borrow-to-Use Forest Area Permit (IPPKH) from the Ministry of Environment and Forestry. He said, the revocation also applies to companies whose IUPs exist, IPPKHs exist but do not complete the Work Plan and Budget (RKAB).

“There is an IUP but it doesn't take care of IPPKH, so it's been a long time coming, from 6 years 7 years to some even decades. The IUP has IPPKH, but it doesn't take care of the RKAB," he explained.

"Well, this is because there are certain intentions to sell, what do you want? Third, the IUP is there, the IPPKH is there, the RKAB is there but it doesn't work. This is usually a financial shortfall,” he added.

For information, the data on the revocation of IUPs, which reached 1,118, is part of the revocation of 2,078 IUPs launched by President Joko Widodo in early January. In other words, the progress of the revocation has only reached 53.8 percent of the target.

Source: https://www.tambang.co.id/terkini-menteri-bahlil-cabut-1-118-iup-mineral-dan-batubara-28565/