Indonesian Political, Business & Finance News

ESDM Strengthens Mining Governance Through Oversight and Evaluation

| Source: ANTARA_ID Translated from Indonesian | Mining
ESDM Strengthens Mining Governance Through Oversight and Evaluation
Image: ANTARA_ID

Jakarta (ANTARA) - The Directorate General of Minerals and Coal (Ditjen Minerba) at the Ministry of Energy and Mineral Resources (ESDM) is strengthening mining governance by ensuring that all licensing processes and supervision of mining activities run through a standardised, measurable, and digitalised system.

“Every mining activity must have a legal basis, clear planning, and comply with all applicable provisions. Therefore, the government conducts a comprehensive evaluation of the various requirements that form part of mining governance,” said Director General of Minerals and Coal at the ESDM Ministry, Tri Winarno, in an official statement confirmed by ANTARA from Jakarta on Friday.

Tri stressed that mining activities cannot be carried out merely by possessing a Mining Business Licence (IUP). Each company is also required to prepare a clear activity plan, fulfilling technical, environmental, safety aspects, and state revenue obligations before obtaining approval to commence operations.

In accordance with Article 111 of Law Number 3 of 2020 concerning Mineral and Coal Mining, the RKAB is a mandatory document for holders of Mining Business Licences (IUP) and Special Mining Business Licences (IUPK). It contains plans for mining business activities, covering aspects from exploitation, technical, financial, to environmental matters.

The RKAB document serves as a reference for companies in carrying out mining activities during the exploration, production operation, processing and/or refining, and post-mining stages. Therefore, every RKAB submission must undergo an evaluation process before receiving government approval.

In this evaluation process, the Directorate General of Minerals and Coal examines various aspects, including administrative completeness and licensing legality, conformity of the mining plan with good mining practice principles, fulfilment of environmental obligations including reclamation guarantees, mining safety aspects, and the company’s ability to meet state revenue obligations.

“We continuously make corrections and evaluations of the submitted documents so that mining activities proceed according to plan and adhere to the principles of good mining governance. Approval is granted only after all required aspects are declared compliant,” said Tri.

The regulation of RKAB is reinforced through Government Regulation Number 25 of 2024 and Minister of Energy and Mineral Resources Regulation Number 17 of 2025. All RKAB submissions are now conducted electronically via the integrated information system e-RKAB as part of the digital transformation of mineral and coal governance.

Through this policy, the RKAB matrix has been simplified to three matrices for the exploration stage and ten matrices for the production operation stage. This simplification was carried out without reducing oversight of mining safety aspects, fulfilment of Non-Tax State Revenue (PNBP) obligations, use of mining services, community development and empowerment (PPM), and reclamation obligations.

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