PRIME NEWS POST

The INDONESIAN (Aceh) – The Aceh Investment Development Forum (FORBINA) has stated that the controversy surrounding the issuance of Mining Business Licenses (IUP) in Aceh should be addressed objectively and proportionately. The primary focus should not be solely on the number or size of the licensed areas, but rather on ensuring that mining operations are managed transparently, accountably, and deliver tangible benefits to the people of Aceh.

FORBINA Director Muhammad Nur, S.H., explained that the mining sector is one of the most complex and sensitive areas of investment among the public. Discussions about mining development frequently raise concerns such as social conflict, community opposition, environmental issues, and allegations of permit trading.

“The public needs to understand that mining investment is neither a simple nor a low-cost business. The process from exploration to full-scale production can take many years — sometimes up to eight years. License holders must meet all administrative, technical, environmental, and financial requirements before they can begin full operations,” Muhammad Nur said.

He acknowledged that Aceh’s abundant mineral resources deserve collective attention, but stressed that this should not be interpreted as a reason to halt investment through a blanket moratorium. Instead, what is needed is strict oversight and consistent law enforcement to address any violations.

FORBINA emphasized that deforestation and land damage cannot be automatically attributed to all licenses still in the exploration phase. Under mining regulations, exploration activities are clearly distinct from full-scale production operations.

“For licenses still classified as exploration permits, claims of environmental damage must be proven through scientific evidence and legal procedures. A far more serious ongoing issue is the widespread presence of illegal gold and oil mining operations, which operate without permits or any regulatory oversight,” he added.

Muhammad Nur also emphasized that the government must take firm action against companies that misuse their permits. If holders of exploration licenses are found carrying out illegal production activities in the field, their permits must be revoked and they must be prosecuted in accordance with applicable laws.

Furthermore, FORBINA noted that the issuance of a reasonable number of permits is standard practice in governance. As long as all requirements are met and administrative procedures follow regulations, the government is obligated to provide legal certainty for investors.

“The real challenge is not how many permits are issued, but which investors are truly capable of realizing their investments. Many companies obtain licenses, but not all can sustain operations until the production stage due to limited capital, high operational costs, and the various inherent risks of investment,” he explained.

FORBINA argued that the success of the mining sector should be measured by its contribution to job creation, increased regional revenue, and compliance with environmental protection principles. Therefore, local government, law enforcement agencies, business operators, and the community must establish joint oversight to ensure incoming investment genuinely benefits Aceh.

“What should be combated are illegal mining practices and permit abuse — not investment that operates within the rules. Aceh needs sound investment to drive economic growth, but such investment must also abide by the law and prioritize the interests of the people,” Muhammad Nur concluded.