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JURNAL

SOSAINS

JURNAL SOSIAL DAN SAINS

VOLUME 2 NOMOR 11 2022

P-ISSN 2774-7018, E-ISSN 2774-700X

PROLIFERATION OF UNLICENSED MINING IN INDONESIA

WHEN THE MINERBA LAW WAS ENACTED

Sri Suatmiati, Feri Tuispani, Reny Okpirianti

Universitas Muhammadiyah Palembang, Indonesia

Email : Ibunda.srisuatmiati@gmail.com, ferituispanif@gmail.com,

renyeyeyen05@gmail.com

Keywords:

Ilegal mining,

Coal, Law,

Government.

ABSTRACT

Background: Article 33, Section 3 of the 1945 Constitution of the Republic of Indonesia

states, "Land and water and the natural resources therein shall be under state control

and shall be used for the maximum prosperity of the people." Therefore, according to

Article 33, Section 3 of the 1945 Constitution of the Republic of Indonesia, Indonesia's

natural resources are managed by the state to benefit the people, as mentioned earlier.

Coal production in Indonesia is increasing every year.

Purpose: Therefore, the Indonesian government has decided to change the country's

primary energy source from petroleum to coal by 2025.

Method: The research style employed in this study is normative legal; however, it is

supported by data/information from the Directorate General of Mineral and Coal about

numerous issues associated with unlicensed mining in Indonesia.

Results: Illegal mining must be eradicated through a concerted effort. Improving mining

supervision and monitoring aspects, particularly by increasing the quantity and calibre

of mining supervision employees, should be a top priority for the government's current

preventative measures (mine inspectors). Furthermore, repressive attempts by law

enforcement must be addressed seriously, particularly against law enforcement officers

who participate in such operations. In addition, illegal mining must be prosecuted by

addressing multiple elements, including legal, law enforcement, infrastructure,

community, and cultural factors.

Conclusion : In this instance, the House of Representatives of the Republic of Indonesia

must urge the government to adopt a fiscal policy that better supports the facilities and

equipment of law enforcement officers in the mining industry. This is important to tackle

various challenges associated with the monitoring and monitoring requirements of

mining activities.

INTRODUCTION

Article 33, Section 3 of the 1945 Constitution of the Republic of Indonesia states

(Ruslina, 2016), "Land and water and the natural resources therein shall be under state

control and shall be used for the maximum prosperity of the people." According to Article

33, Section 3 of the 1945 Constitution of the Republic of Indonesia, Indonesia's natural

resources are managed by the state to benefit the people, as mentioned earlier. These are

the natural resources that are controlled and used for the benefit of the Indonesian people.

(Harinda, Purnawan, & Witasari, 2021).

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p-ISSN 2774-7018 ; e-ISSN 2774-700X 
 
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Indonesia's  natural  resources  also  include  mineral  resources,  which,  if managed 
effectively, contribute to economic development. Indonesia is a mineral-rich country in the 
mining  industry  whose resources  can be  extracted anytime  (Lavianchandra,  Sahari,  & 
Fauzi, 2020). 
Coal  production  in  Indonesia  is  increasing  every  year.  Therefore,  the  Indonesian 
government has decided to change the country's primary energy source from petroleum to 
coal by 2025 (Achsan & Barcah, 2015). However, unlike in developed countries where 
illegal coal mining has ceased, it is still widespread in developing countries (Thomson & 
Finenko, 2014). Illegal (unlicensed) mining provides employment, revenue, and increased 
market activity. Nevertheless, the negative impacts, such as the degradation of agricultural 
land and water pollution, high cost of living, and increased social crime, outweigh the 
positive effects (Volgin, Safargalieva, & Sergeev, 2020). 
   Illegal  mining,  which  involves  small-scale  mining  without  adequate  safety 
equipment and facilities, often leads to the death of miners in some places (Drapezo & 
Shelestukov, 2019). The rugged terrain, inadequate personal safety system, lack of medical 
equipment and medicines on-site, distance of health facilities from the mining area, and 
lack of parties responsible for the safety of these workers' lives are concrete reasons why 
the  problem  of illegal mining  in  Indonesia  requires significant  attention  (Shelestukov, 
Drapezo, & Islamov, 2020). 
  Illegal mining is a euphemism for unauthorized mining. According to Law No. 4 
of  2009,  three  types  of  permits  are  recognized.  IUP  (Mining  Business  Permit),  IPR 
(People's  Mining  Permit),  and  IUPK  are  the  three  permits  (Special  Mining  Business 
Permit). This is implicitly referred to in Chapter XIII of the Criminal Code, which specifies 
administrative penalties and criminal sanctions for illegal mining (illegal mining) (Birawa 
& Tedjosaputro, 2020). 
  Illegal mining in Indonesia is also not a new development; illegal mining has been 
common in almost all areas with the potential for rich mineral resources. As with money, 
the activities of unlicensed miners are generally not environmentally friendly because they 
are only engaged in their hobby for a limited period. This behaviour results from a lack of 
awareness of environmental conservation (Nomani et al., 2021). In addition to ecological 
problems, mining areas in several regions indicate the risk of poverty and potential conflict. 
The  industry's  struggle  with  surrounding  communities  over  strategic  sources  such  as 
mining materials is potentially the most significant conflict (Bruno et al., 2020). This has 
led to the widespread problem of unlicensed miners (PETI), whose sites are spread across 
most of Indonesia. The PETI problem remains homework for the Ministry of Energy and 
Mineral  Resources  and  needs  to  be  addressed  immediately  (Mulyanto,  2018).  Mining 
activities without a permit / illicit mining are inextricably linked to four underlying reasons. 
The rise of mining activities without authorization has reached a particularly worrisome 
stage (Suroto & Gunarto, 2018). It has also led to an increase in the sale of mining products 
on  black  markets  that  illegally  exploit  natural  resources,  distribute,  and  sell  mining 
products, thereby evading state taxes. This is the primary reason for the prevalence of 
unlawful mining-related crimes (Ukut, 2020). 
 RESEARCH METHODS 
The research style employed in this study is normative legal; however, it is supported 
by data/information from the Directorate General of Mineral and Coal about numerous 
issues  associated  with  unlicensed  mining  in  Indonesia.  In  addition,  the  Ministry  of 
Resources and Energy collects data secondarily, notably through the utilization of data that 
the Ministry itself has supplied. 
 

Proliferation Of Unlicensed Mining In Indonesia When

The Minerba Law Was Enacted

2022

Sri Suatmiati, Feri Tuispani, Reny Okpirianti 1224

RESULTS AND DISCUSSION

After the Minerba Law was implemented in Indonesia, the power holders for

mining licenses changed. The federal government has returned the implementation

of mining licenses for non-metallic minerals and rocks to their separate areas as of

February 11, 2022. However, this continues to be a hurdle for the coal-producing

region of Muara Enim in South Sumatra. The bureaucracy's difficulties in issuing

mining permits have led to increased unauthorized coal mining in some areas of

Indonesia (Spiegel, 2012). Receipts should be simplified to expedite investments

that will eventually be used for the country's development. For instance, the

royalties paid directly to the Indonesian government can progressively rise to match

the country's development demands.

In addition, the unauthorized mining is a result of the lack of welfare of local

communities in the vicinity of the mine. With the presence of mines in the area, the

local economy should be able to absorb local workers and turn the wheels.

Therefore, local and central governments must be vigilant to resolve this issue.

Taking into mind the welfare of the surrounding community and developing

effective coordination between the government and the local police to take extreme

action, namely the closure of the mine in the absence of government approval, can

reduce the prevalence of PETI. However, this will lead to the expansion of

unlicensed mines in Indonesia due to the difficulty in obtaining mining permits.

According to data from the Ministry of Energy Resources and Minerals,

Unlicensed Mining, often known as PETI, remains a government issue. Therefore,

efforts and assistance from all parties are required to promote handling the PETI

issue and its consequences. More than 2,700 PETI sites are located throughout

Indonesia. According to data from 2021, there are approximately 96 locations for

coal PETI and 2,645 places for mineral PETI (quarter-3). South Sumatra Province

contains one of the most PETI sites.

Enforcement of Unlawful Mining Offenses, Illegal mining is one of the

mining-related crimes outlawed by the Mineral and Coal Law and the Amendment

to the Mineral and Coal Law, according to the applicable positive law.

Administrative fines and criminal sanctions are available for those who violate the

ban restrictions of Article 2 of the Mineral and Coal Law. Additionally, the offender

may be liable for additional punishments.

Administrative consequences for illegal mining include: (a) written warnings;

(b) fines; (c) the temporary suspension of some or all exploration or production

activities; and (d) the cancellation of an IUP, IUPK, IPR, SIPB (Rock Mining

License), or IUP for Sale. In addition, holders of Mining Business Permits (IUP),

People's Mining Permits (IPR), or Special Mining Business Permits (IUPK) are

subject to administrative punishment for violations of many conditions outlined in

Article 151. (Amendment to the Mineral and Coal Law). One of them is using a

Mining Business Permit (IUP) in a manner not permitted by the IUP's issuance

(Article 41 of the Mineral and Coal Law).

Meanwhile, the Mineral and Coal Law offenders of Articles 158 to 164 may

face criminal penalties. Article 158 (Amendment to the Mineral and Coal Law), for

instance, provides that anyone who engages in mining without a license as required

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p-ISSN 2774-7018 ; e-ISSN 2774-700X

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by Article 35 is subject to a potential sentence of 5 years in prison and a maximum

fine of Rp100 billion (one hundred billion rupiahs). In this instance, Article 35

(Minerba Law as amended) governs the business licenses issued by the central

government. Moreover, in addition to administrative and criminal sanctions,

perpetrators of mining crimes may face additional crimes in the form of (a)

deprivation of goods used in committing criminal acts; (b) deprivation of profits

derived from criminal acts; or (c) the obligation to pay costs resulting from a

criminal act.

Implementing the Mineral and Coal Law, which should be an effort to combat

these crimes, satisfies a sense of justice and effectiveness as if it were weak.

However, law enforcement must be undertaken as a governmental response to

crime. To Eliminate Criminal Indictment, law enforcement preferably demands

rational actions that must be coordinated with one another. This context includes

criminal/penal efforts and non-criminal/non-penal activities. Regarding legal

factors, the Mineral and Coal Law has improved legal clarity regarding enforcing

illegal mining regulations.

CONCLUSION

Illegal mining must be eradicated through a concerted effort. Improving

mining supervision and monitoring aspects, particularly by increasing the quantity

and calibre of mining supervision employees, should be a top priority for the

government's current preventative measures (mine inspectors). Furthermore,

repressive attempts by law enforcement must be addressed seriously, particularly

against law enforcement officers who participate in such operations. In addition,

illegal mining must be prosecuted by addressing multiple elements, including legal,

law enforcement, infrastructure, community, and cultural factors. In this instance,

the House of Representatives of the Republic of Indonesia must urge the

government to adopt a fiscal policy that better supports the facilities and equipment

of law enforcement officers in the mining industry. This is important to tackle

various challenges associated with the monitoring and monitoring requirements of

mining activities.

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