Jakarta, MINA – President Joko Widodo (Jokowi) has issued a Presidential Regulation (Perpres) allowing for the redistribution of revoked Mining Business Licenses (IUP) to religious community organizations (ormas), including regional government- owned enterprises (BUMD), village-owned enterprises (BUMDes), and cooperatives.
As reported by Republika online on Tuesday, the provision is outlined in Presidential Regulation Number 76 of 2024 concerning Land Allocation for Investment Planning, signed by President Jokowi in Jakarta on July 22, 2024.
According to the Legal Documentation and Information Network (JDIH) of the State Secretariat Ministry in Jakarta on Tuesday, the provision for distributing IUPs to community groups is specified in Article 5A, paragraph (1).
“For the purpose of improving community welfare, Special Mining Business License Areas (WIUPK) originating from former Coal Mining Business Cooperation Agreements (PKP2B) areas can be prioritized to businesses owned by religious community organizations,” reads an excerpt from the article.
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The mentioned community organizations must meet criteria similar to business licenses and have organs that conduct economic activities aimed at empowering members economically and ensuring community welfare.
The article also specifies that WIUPK offers are valid for a period of five years from the enactment of Government Regulation Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.
The Presidential Regulation delegates authority for determination, offer, and provision of WIUPK to community organization businesses to the Minister of Investment as the head of the task force (Satgas). After the mining management permit is issued, these community organizations must apply for an IUPK through the One Single Submission (OSS) system.
Presidential Regulation Number 76 of 2024 amends Presidential Regulation Number 70 of 2023. Earlier reports stated that Minister of Investment Bahlil Lahadalia mentioned that Regulation 70 aims to achieve structured land use and utilization for investment equalization. Additionally, according to Bahlil, the regulation also organizes business licensing for mining, plantations, and forest utilization for BUMD, BUMDes, businesses owned by community organizations, cooperatives, and businesses owned by MSMEs.
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“The distribution of large-scale IUPs will be conducted through a tender process as regulated by law. However, the technical aspects lie within the Ministry of Energy and Mineral Resources,” he said. (T/RE1)
Mi’raj News Agency (MINA)
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