100% Reclamation and Post-Mining are a Must for IUP and IUPK

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 213.Pers/04/SJI/2020

Date: 22 June 2020

100% Reclamation and Post-Mining are a Must for IUP and IUPK

After Law No. 3 of 2020 on Mineral and Coal Mining was announced on 10 June 2020, the management of the mineral and coal mining subsector has now entered a new era. This law provides effective and comprehensive regulation to solve the current and future issues in mineral and coal mining management. This law also answers the challenge of carrying on mineral and coal mining business that gives real additional value to both national and regional sustainable economic growth while safeguarding the environment.

One important point in this law is about reclamation and post-mining. According to the old mining law No. 4 of 2009 Article 100, IUP and IUPK holders must provide reclamation guarantee and post-mining guarantee funds. If IUP and IUPK holders do not carry out reclamation according to the approved plan, then minister, governor, or regent/mayor according to the jurisdiction can appoint a third party to carry out the reclamation and post-mining using the guarantee funds.

What's new about reclamation and post-mining in Law No. 3/2020? IUP and IUPK holders whose license is revoked or whose license ends but they do not carry out reclamation/post-mining or those who do not deposit reclamation guarantee/post-mining guarantee funds can be sentenced to a maximum of 5 (five) year imprisonment and a maximum fine of Rp 100,000,000,000 (one hundred billion rupiah). Besides the criminal sanctions, IUP and IUPK holders can be subject to an additional sanction in the form of payment of funds to carry out their reclamation and/or post-mining obligations.

"Before Law No. 3/2020 was issued, the government could only impose administrative sanction to business actors. However after this law was issued, former holders of mining licenses have the obligation to carry out reclamation and post-mining until 100% successful; we can also impose special criminal sanction to miners not carrying out reclamation and post-mining", said Acting Director of Mineral and Coal Engineering and Environment, Sujatmiko.

"With this new regulation, we hope there won't be any abandoned mine pits, so we can prevent environmental pollution because this is one of the goals of Law No. 3/2020, namely better environmental management ", Sujatmiko concluded. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

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