Tanito License Revoked, 7 PKP2B Get More Anxious

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Indonesia – 18 Juli 2019

Tanito Harum, one of the giant mining companies in Indonesia has stopped operating a few days ago due to the revision of PP 23 of 2010 concerning the operation period of the black gold (coal) mine. The extension of the permission obtained by Tanito in Januari was revoked after 6 months. Mine land has returned to the country.

This matter caused layoffs for 300 Tanito employees and the mine began to be flooded. Tanito’s contribution to the Indonesian coal industry stopped.

There are 7 companies left behind and waiting anxiously about the fate of their coal concession agreement (Perjanjian Karya Pengusahaan Batu Bara/PKP2B). Based on ESDM data, the 7 PKP2B are:

  1. PT Kendilo Coal Indonesia ends in 2021
  2. KPC ends in 2021
  3. Multi Harapan Utama ends in 2022
  4. Arutmin ends in 2020
  5. PT Adaro Indonesia ends in 2022
  6. PT Kideco Jaya Agung ends in 2023
  7. PT Berau Coal ends in 2025

Chairman of the Indonesia Mining Institute (IMI) – Irwandi Arif claimed this condition could not be tolerated because it could raise concerns if other PKP2B had the same fate. The Indonesian coal industry will also be affected. Arutmin and KPC, for example, have a total production of 100 million tons.

The only solution for current legal vacuum is through presidential discretion, he said.

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