The Ministry of Energy and Mineral Resources (ESDM) has announced that 499 Mining Business Licenses (IUP) have been suspended after their licenses were previously revoked.

Tri Winarno, Director General of Mineral and Coal at ESDM, confirmed that out of the 2,078 IUPs whose licenses were revoked by the Investment Coordinating Board (BKPM), 2,051 were officially canceled.

Of the remaining IUPs, 596 requested to have their license revocations annulled, but 97 are still pending due to outstanding non-tax state revenue (PNBP) debts. As a result, 499 IUPs have been reinstated in the government system via the Minerba One Data Indonesia (MODI).

596 IUPs that requested revocation cancellation, 97 have not met the requirements to be included in MODI due to outstanding PNBP debts," Tri explained during a hearing with Commission XII of the House of Representatives in Jakarta, as quoted on Thursday (14/11/2024).

"Currently, the remaining 499 IUPs, which were canceled by BKPM, have been successfully entered into MODI," he added.

Meanwhile, Minister of Energy and Mineral Resources Bahlil Lahadalia explained the rationale behind the restoration of several previously revoked Mining Business Licenses (IUPs).

The government had initially revoked 2,078 IUPs deemed unproductive as part of efforts by the Investment Acceleration Task Force and the Land Use and Investment Structuring Task Force.

Bahlil explained that when he first revoked these licenses, he faced questions because, at the time, he was serving as Minister of Investment, not Minister of Energy and Mineral Resources. However, he said that the decision was made in accordance with the directives of the Presidential Regulation (Perpres) and Presidential Decree (Keppres).

“At that time, people asked me, 'If you're the Minister of Investment, why did you revoke the licenses?' I told them, ‘The Presidential Regulation and Decree mandated the revocation of land use through the Task Force, whether it's forests or HGUs,’” Bahlil said during a Working Meeting with Commission XII of the House of Representatives, as quoted on Thursday (14/11/2024).

In the evaluation process, the government determined that around 500 licenses were eligible for restoration. Bahlil emphasized that this restoration is based on the principle of fairness, particularly for permit holders who have complied with the required terms and conditions.

“We opened up the space to assess which licenses should be restored and which should not. That’s when the verification process took place,” he added.