HEADLINES

JAKARTA, BPK Public Relations – The Audit Board of the Republic of Indonesia (BPK) has identified several significant issues in the management of mineral, coal, and forestry mining permits at the Ministry of Investment/Investment Coordinating Board (BKPM).

This was highlighted by Board Member II of BPK Daniel Lumban Tobing while presenting the audit report (LHP) on compliance with the mining permits management from 2021 to the third quarter of 2022 at the Ministry of Investment/BKPM on Tuesday (17/9).

Among the issues identified were insufficient supervision of periodic reports from business actors inside the Online Single Submission Risk Based Approach (OSS RBA) system. "This issue is quite crucial as it can hinder oversight of mining activities and provide inaccurate information to the public," said Board Member II of BPK.

As a result, the profiles of business actors in the mineral and coal mining and forestry sectors were out of date in terms of administrative compliance and technical assessments. Additionally, the selection of monitoring objects for the following year by the OSS RBA system did not incorporate the parameters from the business actors' compliance assessments.

"Due to these issues, the BPK recommends that the Minister of Investment/Head of BKPM implement the process of monitoring periodic reports and administrative compliance assessments in accordance with established provisions," he said at the event attended by the Minister of Investment/Head of the Investment Coordinating Board (BKPM), Rosan Roeslani; Vice Minister of Investment/Vice Head of BKPM, Yuliot Tanjung; Director General of Directorate General of Audit II, Nelson Ambarita; and other high-level officials within the Ministry of Investment/BKPM.

Furthermore, the Ministry of Investment/BKPM must collaborate with the Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Environment and Forestry (LHK) to implement a comprehensive supervision subsystem that is integrated into the OSS RBA.

Another issue noted by Board Member II of BPK was the inadequacy of investment activity reporting and the failure to administer written warning sanctions in an orderly manner.

"This results in unreliable data on investment realization achievements in the forestry, metal minerals, and coal sectors, potentially misleading stakeholders in their decision-making processes," he added.

To address the issue, BPK recommended that the Minister of Investment/Head of BKPM develop the Investment Activity Report (LKPM) feature within the OSS RBA supervision subsystem. This feature should provide accurate investment realization information, notify business actors who fail to comply with LKPM reporting, and provide coaching and supervision to ensure compliance.