Mining Activities Cannot Rely Solely on an IUP Licence, Says Energy Ministry
The Ministry of Energy and Mineral Resources (ESDM), through the Directorate General of Mineral and Coal (Ditjen Minerba), has emphasised the importance of complete licensing requirements and fulfilment of obligations for every business entity before mining activities can be carried out. Director General of Mineral and Coal Tri Winarno stated that the Ministry ensures the entire licensing and supervision process for mining activities runs through a standardised, measurable, and digitalised system to strengthen governance in the mineral and coal sector. “Mining activities cannot be carried out solely by possessing a Mining Business Licence (IUP),” Tri said in a written statement in Jakarta on Friday (12/6/2026).
Tri explained that every company is also required to prepare a clear activity plan, fulfil technical, environmental, and safety aspects, as well as state revenue obligations before obtaining approval to run its operations. He conveyed that every mining activity must have a legal basis, clear planning, and comply with all applicable regulations. “Therefore, the government conducts a comprehensive evaluation of the various requirements that are part of mining governance,” he said.
Tri elaborated that, in accordance with Article 111 of Law Number 3 of 2020 on Mineral and Coal Mining, the Work Plan and Budget (RKAB) is a mandatory document for holders of Mining Business Licences (IUP) and Special Mining Business Licences (IUPK). The document contains plans for mining business activities, covering operational, technical, financial, and environmental aspects. He stated that the RKAB document serves as a reference for companies in carrying out mining activities from the exploration stage, production operation, processing and/or refining, through to post-mining activities. “Therefore, every RKAB submission must undergo an evaluation process before obtaining approval from the government. The entire process of submission, evaluation, and approval is processed online and integrated through the MinerbaOne information system,” he continued.
During this evaluation process, the Directorate General of Mineral 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 evaluate the submitted documents so that mining activities proceed according to plan and fulfil the principles of good mining governance. Every approval is granted after all required aspects are declared to have met the provisions,” Tri revealed.
Tri conveyed that the regulation regarding the RKAB is strengthened through Government Regulation Number 39 of 2025 and Minister of Energy and Mineral Resources Regulation Number 17 of 2025. All RKAB submissions are also made electronically through the integrated e-RKAB information system as part of the digital transformation of mineral and coal governance. Through this policy, Tri continued, the RKAB matrix has been simplified to three matrices for the exploration stage and ten matrices for the production operation stage. He stated that the simplification was carried out without reducing supervision over mining safety aspects, fulfilment of Non-Tax State Revenue (PNBP) obligations, use of mining services, community development and empowerment (PPM), and reclamation obligations. “Other matrices that are no longer used have been transferred into the realisation reporting matrix, which must be submitted periodically,” Tri added.
For business entities whose RKAB documents still require improvement, the government provides an opportunity to make corrections according to the applicable mechanism. “If there are indeed aspects that need to be improved, we provide room for them to be completed. We also continue to provide assistance through coaching clinics so that companies understand the aspects that need to be adjusted, enabling their documents to meet the provisions,” Tri continued. He noted that hundreds of assistance sessions have been conducted. Based on evaluation results, some aspects that still require improvement include exploration data and reserve resources, mining and overburden disposal plans, processing and refining aspects, marketing plans, and the completeness of company legality.
As of 12 June 2026, the Directorate General of Mineral and Coal at the Ministry of ESDM has approved 664 RKABs for the year 2026. Meanwhile, a number of other applications remain in the evaluation stage, subject to document completeness and fulfilment of applicable requirements. “The government ensures that the entire process is carried out professionally, transparently, and accountably to guarantee that mining activities proceed according to regulations and support the sustainable management of mineral and coal resources,” Tri concluded.