Yosie Monoarfa, S.H., CPS., CMLC., Founding Partner of Jurist Terra & Co., provided legal counsel to the Director and Management of PT Bolmong Timur Primanusa Resources (PT BTPR) during their attendance at a Public Hearing (RDPU) with the East Bolaang Mongondow (Boltim) Regency Regional People’s Representative Council (DPRD), the Boltim Police Department, the North Sulawesi Provincial Government, and community members on Thursday, June 12, 2025.
This RDPU addressed follow-up actions regarding community reports of mining activities in the Garini Forest area, Buyat Barat Village, Kotabunan Subdistrict. The Garini area is prone to illegal gold mining (PETI) activities,
and some parts of it are suspected to be located within protected forest areas or areas that should be protected.
The RDPU focused on alleged mining conflicts and unauthorized activities by other companies in the area, with the main issues being expired permits and operations within forest areas.
In the mining industry, the greatest risk is not commodity price fluctuations or geological challenges, but rather legal and regulatory risks. Our experience in assisting clients, including in the dynamics of RDPU in regions such as Boltim, confirms that the absence or defect in a single permit document can trigger the suspension of operations, the revocation of permits, and even criminal penalties.
There are at least four main pillars of permitting that a mining company must possess before it can begin production operations:
- Basic Operational Permits (IUP and Derivatives)
The Mining Business License (IUP) for Production Operations is the primary license issued by the Central Government (through the Ministry of Energy and Mineral Resources) after the exploration phase is complete. Ensure that the status is “CnC” (Clear and Clean) and that there are no overlaps with other IUPs.
Key Legal Basis:
- Law No. 3 of 2020 (Amendment to Law No. 4 of 2009) on Mineral and Coal Mining;
- Government Regulation No. 96 of 2021 on the Conduct of Mineral and Coal Mining Business Activities
- Technical and Financial Requirements (Article 101 of the Mineral and Coal Mining Law)
These include permits for processing/refining, transportation, and sales, which must be processed in conjunction with the upgrade of the IUP status. This also includes approval of the Annual Work Plan and Budget (RKAB), which constitutes a formal compliance requirement that must be verified by the Central Government.
3. Environmental Permits and Resource Management
These permits demonstrate the company’s commitment to sustainability and impact management, and these are the issues most frequently raised in RDPU forums.
- Environmental Approval (Amdal/UKL-UPL): An environmental document approved prior to production operations, which outlines plans for environmental management and monitoring.
- Waste Disposal and Emissions Permits: These relate to the management of hazardous waste (B3) and mandatory air quality standards that must be complied with.
- Reclamation and Post-Mining Plans: The company is required to have an Annual Technical Work Plan (RKTT) that includes an approved reclamation plan, as well as to ensure the availability of the Reclamation Guarantee Fund (DJR) that has been deposited.
Key legal basis:
- Law No. 32 of 2009 on Environmental Protection and Management (PPLH), as amended by Government Regulations under the Job Creation Law
4. Land and Forest Use Permits
This is the most critical point where mining often conflicts with other sectors (Forestry and Spatial Planning).
- Spatial Utilization Activity Conformity (KKPR) / Spatial Utilization Activity Conformity Approval (PKKPR): A document confirming that the mining site complies with the Provincial/Regency Spatial Plan (RTRW).
- Forest Area Borrowing Permit (IPPKH): If the IUP area is located within a Production Forest (HP) or Protected Forest (HL), an IPPKH must be obtained before land clearing activities begin.
Key legal basic:
- Law No. 41 of 1999 on Forestry (as amended).
- Government Regulations governing the use of forest areas for non-forestry activities.
Our law firm not only assists with the processing of permits but also conducts a comprehensive audit of the completeness of the permitting process before clients begin operations. This is done to ensure:
- Permit Integration: All permits—from the central government (ESDM), sectoral agencies (Forestry), to local authorities (Environment)—are fully integrated and free of conflicts.
- Public Readiness: All supporting documents are ready to address critical questions in public forums (such as RDPU), thereby mitigating political and social risks.
For companies in the mining sector, a complete permitting package is not merely a matter of administrative compliance; it is a strategic asset and the most effective line of legal defense. Our experience in guiding clients through public oversight forums—such as the Boltim Regional People’s Representative Council’s Public Hearing (RDPU)—confirms that amid a storm of issues, only companies with a solid legal foundation can stand firm.
Our presence supporting BTPR allowed us to clearly and thoroughly articulate BTPR’s position by presenting the fact that BTPR operates under a valid IUP and, most importantly, enabled us to answer every critical question from legislators with direct references to complete and valid permitting documents.
