Perhapi: Mining Companies Should Conduct Regular Compliance Audits
Jakarta (ANTARA) - Wilson Fu, a member of the Legal Advocacy Division of the Indonesian Mining Experts Association (Perhapi), believes that mining companies need to conduct regular compliance audits to identify and rectify deficiencies before they lead to legal complications.
According to Wilson, compliance in the mining sector involves not only mining regulations but also environmental and forestry provisions; therefore, companies must ensure that various obligations are met throughout their business operations.
“Through this, we can identify the current weaknesses within a company and take immediate corrective action before the government enforces the law. This is a preventive step that can be taken,” Wilson stated during a Perhapi Knowledge Sharing session themed ‘Mining Legal Compliance’ in Jakarta on Monday.
He noted that companies should undertake at least four steps: ensuring all licensing requirements are met from the outset, monitoring post-licensing obligations, conducting regular compliance audits, and maintaining proper documentation and archiving.
He added that companies must ensure all documents required for licensing are complete, accurate, and in accordance with regulations.
Once a permit is obtained, ongoing obligations must be monitored to ensure they are fulfilled on time.
Wilson emphasised the importance of storing documents that prove compliance with licensing requirements, including historical documents used during the initial application process.
“This may sound simple, but it is extremely important and is often neglected by mining companies,” he said.
After obtaining a Mining Business Licence (IUP), companies still have several obligations during their operations. These include reclamation plans and the placement of reclamation guarantees, post-mining plans and guarantees, Work Plans and Budget (RKAB) approvals, the appointment of a Mine Technical Manager (Kert), payment of non-tax state revenue (PNBP), and activity reporting.
One obligation highlighted by Wilson was the approval of the RKAB. Provisions regarding the RKAB are regulated under ESDM Ministerial Regulation Number 17 of 2025, with some provisions subsequently amended via ESDM Ministerial Regulation Number 6 of 2026.
These regulations prohibit holders of IUP and Special Mining Business Licences (IUPK) from conducting mining activities if they have not yet obtained RKAB approval.
“Therefore, when RKAB approval has not been obtained, companies must not commence field activities,” said Wilson.
ESDM Ministerial Regulation Number 17 of 2025 also stipulates administrative sanctions for violations of RKAB and reporting provisions, ranging from written warnings and temporary suspension of partial or entire business activities to the revocation of licences.
Wilson believes that attention to compliance is becoming increasingly vital as government oversight and enforcement of mining activities, including those within forest areas, intensify.
Through Presidential Regulation Number 5 of 2025 concerning the Orderliness of Forest Areas, the government regulates enforcement through the collection of administrative fines, the reclamation of forest areas, and/or asset recovery to improve the governance of activities within forest zones.
Data from the Forest Area Orderliness Task Force (PKH) as of 14 January 2026 shows that the reclamation of mining sector land has reached 8,822.26 hectares across 75 companies, covering commodities such as nickel, coal, quartz sand, and limestone.
On 17 April 2026, the Ministry of Energy and Mineral Resources (ESDM) also stated that the enforcement of mining activities that do not comply with regulations is being tightened through evaluations of IUPs, including unauthorised activities and operations in prohibited areas.
Amidst these regulatory developments, Wilson advised that corporate legal departments must continuously monitor changes in rules and map out obligations to anticipate potential issues early.
“We must continue to monitor, study existing regulations, and anticipate every new regulation that is issued,” said Wilson.