Firm instructions at the TPAKD National Coordination Meeting

President Prabowo Subianto has ordered Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia to revoke mining business licenses (IUP) that have shown no real activity for more than two years. The instruction was delivered at the 2026 National Coordination Meeting of the Regional Financial Access Acceleration Team (TPAKD) at JIExpo Kemayoran, Jakarta, Thursday (22/10/2026).

"I have instructed the Minister of Energy and Mineral Resources, if for more than two years there is no real activity, revoke it!" Prabowo asserted. According to the President, quite a number of mining concessions in Indonesia have been abandoned or left unworked for decades.

Masela Block 28 years as an example

Prabowo cited concessions in the Masela and Tanimbar areas of Maluku, which went unworked for 28 years. He assessed that granting permits to parties lacking operational capacity was one of the causes of untapped natural resource potential.

The President admitted to having flown to Japan to meet with a number of figures and to ask the Japanese side directly, including Inpex, whether they were still interested in continuing work on the concession. If not, the government would be forced to revoke it because the people desperately need it.

Concessions are used for speculation

According to Prabowo, many concessions are granted to businessmen who are not mining experts and do not understand mining operations. Once the permit is issued, the concession is instead used for speculation or taken to the capital market, while mining activities do not proceed.

"We must not be too quick to hand out concessions. We have to be thorough — whether the person we entrust the concession to truly has the capability to run it or not," said Prabowo. He stressed that such practices harm the nation because the potential of natural resources goes unutilized.

Selection of concession recipients tightened

Going forward, the government is committed to being far more meticulous and selective in issuing mining concession permits. Every permit recipient must be assured of having the financial capacity, technical competence, and full seriousness to carry out business activities for the prosperity of the people.

On the same occasion, Prabowo also mentioned that the five IUPs hold reserves valued at Rp5,400 trillion. The crackdown on unused permits is part of the government's efforts to improve governance in the mining sector.

This policy complements the measures to bring order to the natural resources sector that have been underway since the beginning of Prabowo Subianto's administration.