The Ministry of Energy and Mineral Resources (ESDM) has frozen 106 mining business permits (IUPs) for mineral and coal operations that failed to submit their 2026 work plan and cost budget (RKAB). PT Tonia Mitra Sejahtera (TMS), a mining company owned by Southeast Sulawesi governor Andi Sumangerukka, and PT Masempo Dalle (MD), owned by Chamber of Commerce and Industry (Kadin) chairman Anton Timbang, are also on the freeze list. However, the ESDM is still providing room for all IUP holders to improve and fulfill their administrative obligations.
Tri Winarno, director general of mineral resources at the ESDM, emphasized that the freeze was imposed after the Directorate General of Mineral and Coal (Minerba) issued progressive warning letters from SP1 to SP3. If they fail to submit the RKAB on time, the government will issue level 1, 2, and 3 warnings, followed by temporary suspension, Tri said on Saturday, May 23, 2026.
Although permits have been frozen, the government is still giving companies a 90-day opportunity to apply for their 2026 RKAB. If obligations are not met by the deadline, the Directorate General of Mineral and Coal has the authority to revoke the mining business permits. Tri explained that most obstacles to RKAB submission relate to the verification of mining reserve resources. There are also issues concerning the completeness of personnel associated with feasibility studies (FS) that do not comply with relevant regulations. Nevertheless, the government continues to prioritize a coaching approach. The policy is seen as an important driver for mining companies to strengthen administrative compliance and improve professional and sustainable mining management standards in Indonesia, including in one of the country's largest nickel-producing regions.
Written by Cora Ji, jiruyan@mysteel.com
