Mining Businees Licensing in Indonesia: Perspective Administrative Law After the Revision of the Mineral and Coal Law

Abstract

The regulation of mining business licenses (IUP) has experienced dynamics. In Law No. 4 of 2009 on Mineral and Coal Mining (Minerba Law), the central and regional governments exercise the licensing authority proportionally. Then, in 2020, the head of mining licenses was changed again through Law No. 3 of 2020. Based on this law, the licensing authority is fully vested in the central government. This shift in licensing authority is interesting to study. The study departs from the questions: (a) how are the boundaries of legal and illegal mining businesses in Indonesia; (b) how are the procedures and requirements for obtaining an IUP from an administrative law perspective; (c) how are the sanction arrangements for illegal mining business actors after the revision of the Minerba Law. This study departs from the use of normative legal research methods with a statutory approach and conceptual approach. Finally, the study results reveal that the basic principle underlying the management of natural resources, especially mineral resources, is the licensing instrument. Licensing, which is included in the administrative law regime, requires the state to intervene actively in matters concerning public welfare. Through licensing, the government can control or at least reduce the rate of pollution and environmental damage due to mining activities. In ensuring that efforts to regulate mining activities by the government-run as they should, sanctions are set to provide law enforcement, which is the form of administrative and criminal sanctions.