The deadline of evaluation for mineral and coal mining permits (IUP) by the Provincial Government has ended by January 2, 2017. As stated in the Ministerial Decree number 43/2015 on the Procedure of Evaluation for Mining Permits, non-Clean and Clear (non-CnC) IUP should be revoked.

Evaluation of thousands of IUP includes the administrative aspect, territorial, technical and environmental as well as financial obligations. Aryanto Nugroho, Advocacy Manager of Publish What You Pay (PWYP) Indonesia said we urge the governor to take immediate action toward non-CnC IUP in each region.

The decisive action, he added, is to revoke non-CnC IUP and restore the status of the land in accordance with the land use policy that have been set, especially if the permit were located in the forest areas. “Curbing the non-CnC IUP shall not be an endless problem, it can’t be dragged on anymore. KPK has stepped in to monitor and supervise the reconciliation and evaluation of these permits since three years ago,” said Aryanto.

In his official press release on December 20, 2016, Ignatius Jonan-Minister of Energy and Mineral Resources said IUP that have passed the evaluation process and named as of CnC reached 6,335 out of the total 9,721 IUP, so there are still 3,386 non-CnC IUP.

Maryati Abdullah, National Coordinator of PWYP Indonesia affirmed if the governors don’t revoke non-CnC IUP, the Ministry of Energy must use its authority to revoke as set out in Article 152 of Law number 4/2009 on Mineral and Coal Mining (Mining Law). Maryati also recommended the Ministry of Energy to coordinate with other ministries such as the Ministry of Home Affairs (MOHA), Ministry of Environment and Forests (KLHK), and the Ministry of Finance (MOF) to settle environmental liabilities, financial and taxation of the mining companies.

Carolus Tuah, Coordinator of Pokja-30 East Kalimantan said that the governors who have revoked the non-CnC IUP should be transparent and disclose to public the revoked IUP as well as CnC IUP, so that the public can monitor whether the permits violates community rights.

Company’s Obligation Must Stay Charged

Agung Budiono, Program Manager on Coal Governance, PWYP Indonesia, warned that revocation of non-CnC IUP do not eliminate the obligation of the companies that have not been met. “The government shall collect both financial and environmental obligation of the companies that has not been fulfilled, such as taxes, non-tax revenues as well as the implementation of reclamation and mine closure, despite the IUP has been revoked,” he said.

The findings from Mining Coordination and Supervision of KPK conclude as many as 6.3 million hectares of the mine into the conservation and protection forest; there is still a non-tax receivables amounting to Rp 26.2 trillion, which 21.8 trillion from DHPB / Royalty of 5 (five) Company PKP2B Generation I and the remaining Rp 4.3 trillion from PKP2B, KK and IUP; and as much as 75% IUP did not pay reclamation and post-mining fund.

“The government must ensure the settlement is conducted in transparent manner, given its huge state losses and environmental damage. The issuance of the Supreme Court Regulation (Perma) No. 13 /2016 on Procedures for Handling Criminal Acts by the Corporation should ease government measures toward mining companies who haven’t settle the obligations if it goes into the lawsuit,” added Agung.