Legitimate! ESDM Allows Mining Area to Expand by 25,000 Hectares News – 41 minutes ago

Jakarta, CNBC Indonesia – The Ministry of Energy and Mineral Resources (ESDM) officially allows Mining Business Permit (IUP) holders to expand their mining areas (WIUP) up to 25,000 hectares for Metal Mineral IUP holders.

Likewise, for coal IUP holders, mining areas are permitted to be expanded to a maximum of 15,000 hectares.

This is stated in the Decree of the Minister of Energy and Mineral Resources No.375.K/MB.01/MEM.B/2023 concerning Guidelines for Applications, Evaluation and Processing of Expansion of Mining Business Permit Areas and Special Mining Business Permit Areas in the Context of Mineral and Coal Conservation.


This Ministerial Decree was stipulated by the Minister of Energy and Mineral Resources Arifin Tasrif and became effective on the date of enactment, 23 October 2023.

This decision also applies to holders of Special Mining Business Permits (IUPK). However, the amount of area expansion was not specifically stated, but only stated “in accordance with the results of the Minister’s evaluation for WIUPK.”

So, why did the government finally allow the expansion of mining areas?

In the second point, it is stated that the application for expansion of WIUP or WIUPK is intended for:
a. optimizing the potential of marginal mineral or coal reserves in the area requested for expansion; and/or
b. optimizing indications of marginal mineral or coal deposits in the area requested for expansion.

In the fourth point, it is stated regarding the criteria for areas where WIUP or WIUPK expansion can be requested, as follows:
a. is the region:
1. which coincides with the initial WIUP or WIUPK, and there is the potential for continuity of coal seams or mineral deposit characteristics that
proven by extrapolation of Exploration data to the initial WIUP or WIUPK boundaries; or
2. which coincides with the initial WIUP or WIUPK and is between 2 (two) or more WIUP or WIUPK (corridor areas), and there is potential
continuity of coal seams or mineral deposit characteristics as proven by extrapolation of Exploration data to the boundaries of the initial WIUP or WIUPK; And

b. areas that do not overlap with:
1. WIUP or other WIUPK for commodities;
2. State Reserve Areas or Community Mining Areas;
3. areas that have been proposed to be designated as metal mineral WIUP, coal WIUP or WIUPK;
4. IUP areas that are still in the process of issuance/registration based on the results
the decision of the state administrative court or the final report on the results of the examination from the state institution that has the authority to supervise the implementation of public services;
5. former IUP or IUPK areas that have been revoked and are in the evaluation process;
6. area of ‚Äč‚Äčapplication for expansion of WIUP or WIUPK which is still in process or which has been approved; And
7. area designated as an investigation and research assignment area in the context of preparing a WIUP or in the context of preparing a WIUPK for the development and/or utilization of coal.

The criteria for IUP or IUP holders who can apply for expansion of WIUP or WIUPK are determined as follows:
a. registered in the list of IUPs resulting from the arrangement of IUPs and IUPKs that meet the provisions registered in the IUP database of the Directorate General of Minerals and Coal (Minerba One Data Indonesia/MODI);
b. has produced for at least 3 (three) consecutive years and has good conservation performance;
c. has carried out detailed exploration in all prospect areas in the initial WIUP or WIUPK; And
d. has submitted exploration data to the Exploration Data Warehouse (EDW) application.

“IUP or IUPK holders, before submitting an application for expansion of a WIUP or WIUPK, are required to first obtain approval for the work plan for the expansion of a WIUP or WIUPK from the Director General of Minerals and Coal by implementing an application system that meets the requirements,” reads the sixth point.

[Gambas:Video CNBC]

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