Reporter: Arfyana Citra Rahayu | Editor: Syamsul Azhar
KONTAN.CO.ID-JAKARTA. The Ministry of Energy and Mineral Resources (ESDM) is soon to auction off 10 areas of mining business permits (WIUP) for metal minerals and coal scattered across various regions in Indonesia.
However, the auction for some WIUP mines with very small areas, in the view of Acting Executive Director of the Indonesia Mining Association (IMA), Djoko Widajatno, will be quite challenging.
Because, according to Djoko, WIUPs that are generally considered attractive and economical in the eyes of entrepreneurs are WIUPs with a land area of at least 25,000 hectares (ha). On the other hand, WIUPs with an area of 25,000 ha or more, but auctioned with a mineral data compensation value (KDI) up to tens of billions or more, are also less attractive according to Djoko.
“The highest if the area is large is (its KDI) Rp 1 billion - Rp 1.5 billion. The calculations abroad do not reach tens of billions,” said Djoko when contacted by Kontan.co.id, Thursday (5/10).
Even so, this does not mean that the auction of WIUPs with small areas, or WIUPs with a KDI value above Rp 1.5 billion, will definitely not sell. Because certain mineral commodities such as critical minerals are being eyed by mining companies.
“There is a possibility that someone dares, it is being pursued by people because of the opportunity to get critical minerals that will be used to build EVs and renewable energy,” he said.
A little information, the ten WIUPs that will be auctioned have a variety of area sizes, ranging from hundreds to tens of thousands of hectares. The same goes for the value of their KDI. Some are still in the range of hundreds of millions of rupiah, some are up to hundreds of billions of rupiah.
In detail, the list of 10 WIUPs along with their area, and the value of data information compensation to be auctioned can be seen as follows;
Waringin Agung Block in East Kotawaringin, Central Kalimantan with an area of 98,820 Hectares (Ha), gold commodity, and data information compensation value of Rp 148.24 billion.
Lolayan Block in Bolaang Mongondow, North Sulawesi with an area of 162.3 Ha, gold commodity, and data information compensation value of Rp 262.32 million.
Wailukum Block in East Halmahera, North Maluku, with a land area of 217 Ha, nickel commodity, and data information compensation value of Rp 1.56 billion.
Gunung Botak Block in Buru, Maluku, with a land area of 24,764 Ha, gold commodity, with a data information compensation value of Rp 37.26 billion.
Semidang Lagan Block in Central Bengkulu, Bengkulu, with a land area of 361 Ha, coal commodity, and data information compensation value of Rp 8.17 billion.
Brang Rea Block in West Sumbawa, West Nusa Tenggara, with a land area of 4,813 Ha, gold commodity, and data information compensation value of Rp 7.22 billion.
Taludaa Block in Bone Bolango, Gorontalo, with a land area of 3,714 Ha, copper commodity, and data information compensation value of Rp 5.57 billion.
Nibung Block in North Musi Rawas and Musi Banyuasin, South Sumatra, with a land area of 21,050 Ha, coal commodity, with a data information compensation value of Rp 95.19 billion.
Kaf Block in Central Halmahera, North Maluku with an area of 914.5 Ha, nickel commodity, with a data information compensation value of Rp 6.58 billion.
Marimoi I Block in East Halmahera, North Maluku with a land area of 4,121 Ha, nickel commodity, with a data information compensation value of Rp 14.83 billion.
According to the schedule, the announcement period for the auction plan will take place from October 2 to October 15, 2023. Meanwhile, registration and submission of auction requirement documents for the WIUP Block of Waringin Agung Block, Lolayan Block, Wailukum Block, Gunung Botak Block, and Semidang Lagan Block will start on October 16 to October 18, 2023.
Then, registration and submission of auction requirement documents for the WIUP Block of Brang Rea Block, Taludaa Block, Nibung Block, Kaf Block, and Marimoi I Block will start on October 18 to October 20, 2023.
Further information and terms and conditions of the auction can be accessed at the Ministry of Energy and Mineral Resources Republic of Indonesia