Govt to apply tender to allocate IUPs

The government will apply tender mechanism in allocating the so-called IUP mining permits and areas to mining companies in the near future, said Tabrani Alwi, a staff expert of the minister of energy and mineral resources as reported by Bisnis Indonesia on Monday.

He said that the tender mechanism is meant to help ensure that the IUPs and mining areas are allocated to qualified companies as in the past many IUPs were given to companies which do not have the competency and capacity to carry out mining activities.

Tabrani said that the government and the House of Representatives are currently in the process of selecting which mining areas would be put up for tender. (*)