Transformation Of Licensing For Mineral And Coal Mining Business Activities

Minerba or commonly known as governance of licensing for mineral and coal mining business activities, is currently in the stage of transformation. Where this is done to streamline the licensing process and take advantage of any current technological advances.

The existence of this transformation shows that mining governance in Indonesia is indeed very advanced. In the current pandemic, submission of applications can be made online by visiting the official website of the Ministry of Energy and Mineral Resources at kemenesdm.minerba@bkpm.go.id.

In addition, to apply for a mining business permit, it can be submitted through licensingminerba@esdm.go.id. Based on the results of discussions held by (PUSHEP) concluded that the existence of this facility is very easy in terms of making mining business permits.

What’s more, mining businesses can not only apply for business permits, but can also track the status of permits. This can be done through “minerba.esdm.go.id/etracking”. This tracking process is simply done by entering the company email address only.

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In addition, it should also be noted that the legal basis for this mining permit is adjusted to Law No. 3 of 2020. This law is an amendment to Law No. 4 of 2009 which discusses mineral and coal mining.

Government Regulation No. 24 of 2018 is also important. Where the legal basis is more focused on discussing digital-based licensing services. The Government Regulation has been drafted using a systematic approach. The basis is the Minister of Energy and Mineral Resources Regulation No. 7 of 2020.

A mining practitioner named Chandra Pamungkas has revealed the procedure for downloading the mining business permit format. Where this is one of the requirements that must be met by every mining business who wants to apply for a business license.

The link that can be accessed for downloading the letter format is at https://www.minerba.esdm.go.id/perizinan/format_surat. Meanwhile, for those of you who want to know what the requirements are, you can access them at https://www.minerba.esdm.go.id/perisinan/persaatan.

The existence of these two websites is one way to make it easier for entrepreneurs to take care of licensing letters. With the advancement of technology in the digital era, this media should also be optimized.

In addition, the progress of development in managing this permit has indeed proven the attention of the Ministry of Energy and Mineral Resources to investors. Even so, according to mining practitioners, of the many facilities that have been provided, there are still some important notes.

Some of them are the lack of socialization and assistance related to Law No. 3 of 2020. This rule or law is very focused on the authority that was originally in the Provincial Government towards the authority of the Central Government. Therefore, it is considered that there are still many regional entrepreneurs who do not really understand how the mechanism is in the management of the Central Government.

What is the role of this change? Of course the Data Centering System contained in the MODI Minerba ESDM system can have a confusing effect with the procedure. This is because there are still many regional IUPs that have not been registered in the MODI system.

Chandra Pamungkas also explained that based on his experience, the readiness of the Central Government (Director General of Energy and Mineral Resources) still needs to maximize its services. This is because everything has been fully controlled by the Central Government, for example for the approval of the RKAB.

Based on the results of the discussions that have been carried out, between Chandra Pamungkas and Suyanto, they keep reminding them that licensing activities often get the spotlight. This is because the mining business is one of the most important parts based on the state’s right to control.

When discussing related to these rights, this has been contained in Article 33 paragraphs (2) and (3) of the 1945 Constitution of the Republic of Indonesia. In addition, it is also contained in Article 33 paragraphs (2) and (3) which were inaugurated through the decision of the Constitutional Court No. 01-021-022/PUU-I/2003.

The explanation related to this basis is that the state control system must be interpreted as a unitary function. Which can be in the form of policy functions, management and management functions which include licensing, concessions, and licenses. If the management function is explained related to share ownership or acts as an institutional instrument.

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As for the latter, namely the supervisory function which includes the form of supervision and controlling every exercise of control by the state. Basically, the element of licensing to establish a mining business needs to be interpreted as a juridical instrument.

Where the permit is a form of juridical instrument in a constitutive decision. This instrument has been used by the government to deal with any concrete events.

Thus, the making and issuance of this permit is one part of the legal action and authority granted by the legislation. The issuance of this permit is carried out by the licensing sector within an organization or in a government agency.

As it is known that government organizations are one part that runs the affairs of the entire government. Based on the results of discussions conducted with Chandra Pamungkas, the elements of the permit can also be concrete. In addition, there are also procedures and requirements for a permit application that must be passed first.

In mining permit governance, the government has officially established a mining legal area policy or WHP. The concept includes sea space, continental shelf, land under water and also land space. However, this WHP is not devoted to aquaculture activities, but is a space for investigation and research.

Usually, this WHP goes directly to find out which areas have the potential to produce coal and minerals. That way, when you want to explore the area, you have to change its status to a first or WP area. Thus, every activity in it must involve the local government as well as the local community.

Suyanto also explained, if after the mining area is changed to WP, the next step is to change it to WUP. The WUP itself is part of the WP which has official availability of data, geological information and potential in the area.

When any information is obtained, it will be further developed into a WIUP or Mining Business Permit Area. In this case, the WIUP is only granted to the IUP holder to carry out production and exploration activities. If it is based on Law No. 3 of 2020, this form of mining licensing is divided into several types.

Some of them are Mining Business Permits and Special Mining Business Permits as a continuation of the Contract of Work and PKP2B. In addition to the People’s Mining Permit, Assignment Permit, Rock Mining Permit, Mining Services Business Permit and Transportation and Sales Permit.

Of course, to get this business license, it needs to be a long process. All kinds of permits have also been officially issued by the Investment Coordinating Board or BKPM. The permit is also not issued without a legal basis.

Where BKPM has adjusted it to Law No. 25 of 2015 which discusses related to the delegation of licensing authority in the mineral and coal mining sector.