Indonesian Govt Lifts Suspension of Four Mining Licenses After Reclamation Guarantee Payments

October 15, 2025 | 05:12 pm

TEMPO.CO, Jakarta - Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia mentioned that out of 190 Mining Business Licenses (IUP) that were suspended, only four companies have fulfilled their obligation to deposit reclamation guarantees.

"Currently, there are four companies whose IUPs have been reopened out of the 44 that applied for the cancellation of suspension," said Bahlil after opening the Minerba Convex 2025 event at JCC Senayan, Jakarta, on Wednesday, October 15, 2025.

Bahlil emphasized that the suspension policy is not intended to make it difficult for business players. According to him, this step is taken to strengthen sustainable and responsible mining governance.

"We want mining companies to comply with regulations and fulfill reclamation obligations in order to avoid environmental damage," he said.

Previously, the Ministry of Energy and Mineral Resources imposed sanctions to suspend 190 mineral and coal IUPs because the companies failed to deposit reclamation and post-mining funds. The sanctions are stipulated in the Decree of the Director General of Mineral and Coal Number T-1533/MB.07/DJB.T/2025 issued on September 18, 2025.

This decision refers to Government Regulation Number 78 of 2010 concerning Reclamation and Post-Mining, as well as Minister of Energy and Mineral Resources Regulation Number 26 of 2018 concerning the Implementation of Good Mining Principles. Under these regulations, every holder of an IUP or an IUPK is obliged to provide reclamation and post-mining guarantees.

If these obligations are neglected, the government is entitled to impose administrative sanctions, such as written warnings, temporary cessation, and permit revocation.

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung stated that the permit suspension was caused not only by issues related to reclamation funds, but also by violations of the company's work plan.

"Several companies are known to have violated the Work Plan and Budget (RKAB), such as producing beyond the approved capacity," said Yuliot during the Green Energy Summit 2025 in Jakarta, on Tuesday, September 23, 2025.

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