After Enforcement by ESDM, Indonesia Now Has 4,250 Active Mining Permits
24 Jul 2025, 08:59 AM
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The Ministry of Energy and Mineral Resources (ESDM) stated that currently there are 4,250 mineral and coal (minerba) mining business permits (IUP) in force in Indonesia and have met the requirements.The Director General (Dirjen) of Mineral and Coal of the Ministry of Energy and Mineral Resources, Tri Winarno, claimed that the government had succeeded in regulating the IUP of mineral and coal, from the previous period of 2009 to 2018 when there were around 12,500 IUPs, to the current record of 4,250 IUPs."What does this mean? It means that the streamlining we conducted together with the Corruption Eradication Commission's (KPK) coordination and supervision (KorSup) and the Deputy for Prevention was truly carried out and implemented," said Tri during a press conference on Improving Mining Sector Governance KPK's Gedung Merah Putih on Thursday (July 24, 2025).According to Tri, coordination and supervision carried out by KPK helps the government regulate illegal IUPs.As a result, the ESDM’s Directorate General of Minerals and Coal has developed the Minerba One Data Indonesia and Minerba One Map Indonesia systems, which are claimed to help prevent the issuance of illegal IUPs.Capturing Non-Tax State Revenue (PNBP)Tri added that the mining-related information system also had a positive impact on non-tax state revenue (PNBP) deposits from the mineral and coal sector.According to him, the use of the Online PNBP Information System (SIMPONI) created by the Ministry of Finance (Kemenkeu) can prevent state revenue leakage due to undeposited PNBP."So, in the end, we'll be using e-PNBP starting in 2019, and for the five years before 2019, compared to the five years after 2019, state revenue will approximately double or triple", he claimed.Moreover, Tri continued, currently almost all information systems belonging to ministries/institutions (K/L) related to the mining sector have been integrated into the Mineral and Coal Information System (Simbara).This integration enables prompt enforcement when irregularities in data are detected between agencies."For example, coal sales that initially paid PNBP for domestic purposes are sold for export. This can be traced within SIMBARA itself", he stressed.Going forward, Tri claims to continue improving mining governance, including through the submission of a mandatory annual work plan and budget (RKAB) which must be re-reported in October 2025.In addition, the Ministry of Energy and Mineral Resources continues to impose sanctions in the form of an automatic blocking system to enforce compliance with PNBP payments.Meanwhile, the Ministry of Energy and Mineral Resources noted that the total national mining business permit (WIUP) area reached 9.11 million hectares (ha), with metal mineral commodities being the most dominant.Tri previously stated that the WIUP for metal minerals during exploration reached 360,513 ha, production operations were 3.82 million ha and post-mining was 6,685 ha."The current national WIUP covers a total area of 9.11 million hectares, comprising 1 million hectares of exploration status, 8 million hectares of production operations status, 6,685 hectares of post-mining status, and 91 hectares of reserves", Tri said during a hearing with Commission XII on Tuesday (11/12/2024).In second place is the coal WIUP, which consists of the exploration stage reaching 117,278 ha and production operations of 3.98 million ha.On the same occasion, Tri also explained that the total mining permits as of November 2024 were 4,634 permits, consisting of 31 contracts of work (KK), 59 coal mining concession agreements (PKP2B), 4,302 IUPs, 10 special mining business permits (IUPK), 48 community mining permits (IPR) and 184 rock mining permits (SIPB).For reference, Energy and Mineral Resources Minister Bahlil Lahadalia reported that the realization of PNBP from the energy and mining sector until June 2025 was only recorded at IDR 117.11 trillion.This figure only reached 46% of the 2025 State Budget (APBN) target of IDR 254.49 trillion.Bahlil acknowledged that achieving this year's target is quite challenging due to the steep downward trend in commodity prices, particularly coal, since the beginning of the year."We must convey that commodity prices, particularly coal, have fallen quite significantly, around 25% to 35% through June. This is due to the uncertainty of the global market", Bahlil said in a meeting with Commission XII of the House of Representatives (DPR) on Monday (July 14, 2025).Of the total PNBP from the ESDM sector amounting to IDR 117.11 trillion that has entered the state treasury, the majority is still contributed by the mineral and coal mining (minerba) sector, amounting to IDR 66.21 trillion.Meanwhile, the oil and gas sector contributed IDR 48.82 trillion, geothermal IDR 0.82 trillion, and the remaining IDR 1.25 trillion came from various sources such as contributions from downstream oil and gas business entities, services, fines, public service agencies (BLU), and other revenues.For the record, the realization of PNBP from the ESDM sector throughout 2024 reached IDR 269.65 trillion, or 113% of the APBN target of IDR 238.39 trillion.This amount was contributed by oil and gas (IDR 110.91 trillion); minerals and coal (IDR 140.46 trillion); geothermal (IDR 2.84 trillion); and other revenues (IDR 15.44 trillion).
