R. Sukhyar, General Director of Coal and Minerals at the Ministry, warned that - based on Law No. 4/2009 regarding Mineral and Coal Mining - the government holds the power to revoke mining permits when miners do not comply with current rules. The Ministry of Energy and Mineral Resources urged Indonesia’s regional governments to make serious efforts to provide the CnC certificate to local miners (after inspecting the companies’ corporate and financial details) before the end of the month. Sukhyar added that the central government has begun to restructure the country’s IUP framework in 12 mining producing provinces¹ since early 2014. These efforts also involved the participation of other institutions such as the Corruption Eradication Commission (Komisi Pemberantasan Korupsi, abbreviated KPK) and the Tax Directorate General (Direktorat Jenderal Pajak, DJP). In 2014, a total of 275 IUPs were revoked.

At the end of 2014 there were a total of 10,643 IUP-holders in Indonesia, of which 4,643 still have not obtained the CnC certificate.

Further Reading:

Overview of the Coal Mining Industry in Indonesia
Coal Mining Industry Indonesia: Higher Royalties for IUP-Holders
Coal Mining in Indonesia: Safeguarding Future Energy Sources
Indonesia Coal Update: Export, Production and New License System

¹ These 12 provinces are East Kalimantan, Central Kalimantan, South Kalimantan, West Kalimantan Southeast Sulawesi, Central Sulawesi, North Moluccas, Jambi, Riau Islands, Bangka Belitung, South Sumatra, and South Sulawesi.