Minister issues regulation on revocation of problematic IUPs

Minister of Energy and Mineral Resources Sudirman Said has finally issued Ministerial Regulation No 43/2015, which acts as guideline for governors to evaluate problematic IUP mining licenses in their respective regions including sanctions such as revocation of the mining license.

Director General of Mineral and Coal Bambang Gatot Ariyono said on Tuesday that the new ministerial regulation was signed on December 30, 2015.

He said that according to the regulation, the governors will be given 90 days to evaluate the problematic IUPs (or under the government?s term called non-clean and clear/non-C&C IUPs) since they receive the documents from regents or mayors. He added that governors, base on Regional Government Law, hold the authority in revoking mining permits.

According to ministry data, out of 10,364 IUPs, some 6,404 IUPs have obtained the C&C certification, while the remainders remain in non-C&C status due to various problems including overlapping of permits and failure of the miners in paying financial obligations to the state properly.

Bambang said that miners failing to pay financial obligations such royalty to the state properly will first be given three warnings before the governors revoke their IUP licenses.

?The issue of non-C&C IUP mining licenses will be concluded in 90 days,? Bambang said. (*)