Encourage Investment, Enforcement of Regulations in the Mining Sector Must Be Strengthened

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Illustration. Doc: Rian/MINE

Jakarta, MINE – Extractive sectors such as mining are still the motor of national economic growth. According to a study by the Institute for Development of Economics and Finance (Indef), the contribution of the mining sector is still high, contributing around 8.5 percent to the national Gross Domestic Product (GDP).

The Ministry of Energy and Mineral Resources (ESDM) noted that during the first semester of 2025 national coal production reached 357.6 million tons or 48.34% of the 2025 production target of 739.67 million tons. The national coal supply allocated for export is 238 million tons, supplying 45% of the world’s electricity needs. Indonesia has abundant mineral and coal commodity reserves, such as nickel, copper, bauxite, tin, gold, silver, iron and coal. These reserves have a value of between USD 3.91 trillion in 2023, and will increase if these resources change to reserve status.

“Indonesia is still rich in natural resource potential. However, legal certainty is needed with proper enforcement of regulations,” emphasized Alpha Research Database Indonesia researcher Ferdy Hasiman when contacted by the media on Tuesday (16/12).

He said that the polemic over mutual claims between mining companies holding Forest Area Borrow-to-Use Permits (IPPKH) and the community was still going on. Therefore, the central government must intervene so that the polemic does not drag on. “This happens a lot in several provinces, in Maluku, Sulawesi, Kalimantan. The central government must monitor the IPPKH issued by the Ministry of Forestry,” he stressed. Forest areas, he continued, belong to the state. So that no one can use it without obtaining permission from the state. Including if there are people who claim to have legal rights over forest areas. Ferdy believes that this is a form of non-compliance with the law.

Another case, if the claim is in APL or Other Use Areas. APL is an area outside the state forest area designated for development outside the forestry sector. Such as agriculture, settlements, industry, and infrastructure, there are spatial zoning in Indonesia where non-forestry activities can be carried out, in contrast to Forest Areas whose function is for conservation and production of forest products. “So IPPKH holders have permission from the state to use them, such as carrying out mining activities. So people cannot just make claims, because the status of forest areas belongs to the state,” he explained.

A number of polemics that emerged regarding IPPKH occurred in East Kolaka Regency (Southeast Sulawesi), Dairi Regency (North Sumatra) and North Barito Regency, Central Kalimantan. “President Prabowo must be firm. Maintain business certainty and provide legal certainty to investors and the community so that the regional economy grows,” he stressed.

On the other hand, Chairman of the Minerals Division of the Indonesian Mining Experts Association (Perhapi) M. Toha also emphasized that forest areas absolutely belong to the state. When presented with an example related to the land polemic in North Barito Regency, Toha said, if the land is in a forest area then the status of the land belongs to the state. “If a company has obtained IPPKH, then it is claimed by the community as customary land, or ulayat land, if it is in a forest area then the claim violates forest encroachment regulations,” he explained.

Investors or mining companies are allowed to provide compensation, not compensation because the land status is state property. According to law, forest areas cannot be owned by individuals. “In forest areas where there is an IPPKH, if someone has a certificate then it is against the law. The owner of the certificate and the one who issued it can be punished, because legally certificates cannot be issued in forest areas,” he explained further.

One of the biggest issues that threatens legal certainty in the mining sector is land overlap between Mining Business Permits (IUP) and other use rights (plantation HGU), also related to the issue of Forest Area Borrow-to-Use Permits (IPPKH) which are then claimed by the community.

According to Toha, the mining industry provides significant positive impacts such as creating jobs and increasing community and regional income through taxes/royalties, developing infrastructure (roads, communications) in remote areas, providing raw materials for other industries, as well as improving the national economy through exports and investment. “The mining sector can improve welfare, open access and drive economic growth, but it requires sustainable management so that the benefits are maximum and the negative impacts are minimal,” he said.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, when visiting disaster victims in West Sumatra last week, emphasized that the Forest Area Control Task Force (Satgas PKH) was involving the Ministry of Energy and Mineral Resources in efforts to restore state control over forest areas that were being used without permission. To date, the PKH Task Force has regained control of 3,312,022.75 hectares of forest area, of which 915,206.46 hectares have been handed over to the relevant ministries. According to Bahlil, the PKH Task Force is targeting controlling 4.2 million hectares of illegal mining so that it can be reused in the interests of the community.

With cross-agency support, the government is working to ensure that forest areas and natural resources are managed according to regulations and provide benefits for the state and society.



Source: www.tambang.co.id

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