Govt Warns IUP Holders on Reclamation Non-Compliance

KELASTAMBANG: The Ministry of Energy and Mineral Resources (ESDM) on October 1, 2025, reaffirmed its commitment to enforcing post-mining reclamation obligations through a progressive sanction mechanism targeting mining permit (IUP) holders, in line with existing regulatory frameworks.

In a forum held with IUP holders, Director General of Mineral and Coal Tri Winarno underscored that reclamation and post-mining guarantees are not optional administrative procedures, but mandatory legal and moral responsibilities embedded in Indonesia’s commitment to good mining practices.

The enforcement is grounded in Government Regulation No. 78 of 2010 on Reclamation and Post-Mining. Article 29 paragraph (1) stipulates that all holders of IUP and IUPK must provide both reclamation and post-mining guarantees. Article 50 details the sanctions for non-compliance, which include written warnings, temporary suspension of operations, and license revocation.

These provisions are reinforced by Ministerial Regulation No. 26 of 2018, which governs the implementation of good mining practices and mineral and coal mining supervision. According to Article 22:

  • IUP and IUPK Exploration holders are required to place reclamation guarantees for the exploration stage.
  • IUP and IUPK Production Operation holders must place both reclamation and post-mining guarantees for the production stage.

Failure to comply with these provisions results in administrative sanctions as per Article 50, ranging from written warnings to partial or full suspension of operations, and ultimately, revocation of permits.

To support implementation, the Directorate General of Mineral and Coal has issued a series of formal sanction letters:

  • First Warning Letter: No. T-2241/MB.07/DJB.T/2024, dated December 10, 2024
  • Second Warning Letter: No. B-727/MB.07/DJB.T/2025, dated May 16, 2025
  • Third Warning Letter: No. T-1238/MB.07/DJB.T/2025, dated August 5, 2025
  • Temporary Suspension Letter: No. T-1533/MB.07/DJB.T/2025, dated September 18, 2025

These escalating measures are part of a formal administrative enforcement track intended to compel compliance across all stages of mining operations.

The Director General emphasized that these sanctions serve as a serious warning to industry players. Reclamation, he stated, is central to ensuring post-mining environmental sustainability and maintaining the mining sector’s legitimacy in the eyes of the public and the state.

The ministry has urged all IUP holders to demonstrate that Indonesian mining can operate with both productivity and sustainability, aligning economic growth with environmental accountability.

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