Statement of President of the Republic of Indonesia on Mining License (IUP), Right to Cultivate (HGU), and Right to Build (HGB), Bogor Presidential Palace, West Java Province, January 6, 2022

Bismillahirrahmanirrahim,

Assalaamu’alaikum warahmatullaahi wabarakaatuh,

Ladies and Gentlemen,

The Government continues to improve governance of natural resources in a bid to achieve equity, transparency, and fairness in reducing imbalance, unfairness, and environmental degradation.

Licenses to mine and utilize forest resources, as well as use of state land continue to be comprehensively evaluated. We have revoked licenses that are unused, unproductive, already transferred to another party, used for unsuitable activities, and against regulations.

First, today as many as 2,078 mineral and coal mining business licenses were revoked because [the companies] never submitted their work plan. Licenses that have been issued for years but never used defer the utilization of natural resources for the improvement of the people’s welfare.

Second, today we also revoked as many as 192 licenses to utilize 3,126,439 hectares of forest. These licenses were revoked due to inactivity, absence of work plan, and abandonment.

Third, rights to cultivate (HGU) a plantation area of 34,448 hectares were also revoked today; 25,128 hectares belong to 12 legal entities, with the rest of the 9,320 hectares are part of the abandoned HGU belonging to 24 legal entities.

License improvement and control serve as an integral part of governance improvement of mining and forestry license as well as other license issuance. The Government continues to improve licensing by facilitating transparent and accountable business licensing and revoking misused licenses.

We must uphold the mandate of the Constitution that earth, water, and natural resources contained inside it are controlled by the state and used optimally for the prosperity of the people.

The Government will provide equitable opportunities to utilize assets for communities and productive social-religious organizations – including farmer communities, Islamic boarding schools, and others – that can partner with credible and experienced companies.

Indonesia is open to credible investors with a good track record, reputation, and commitment to making the [Indonesian] people prosper and preserving the environment.

That concludes my statement.

I thank you.

Wassalaamu’alaikum warahmatullaahi wabarakaatuh.

(DH/EP)