Geothermal License Holders to Pay Rp 100 Billion for Breaking Rules

Summary

Geothermal License (IPB) holders are prohibited from handing over their licenses to other business entities. The violator will receive an administrative sanction of a Rp 100-billion fine, according to Article 14 CHAPTER III on Geothermal of the Government Regulation No. 25/2021 on the Implementation of the Energy and Mineral Resource Sector.

Meanwhile,  Article 15 of the secondary legislation of Law No. 11/2020 on the Job Creation, coming into effect since February 2, states that IPB holders that have relinquished their share ownership in the Indonesia Stock Exchange before conducting any exploration and without the approval of the Energy and Mineral Resources (ESDM) Minister, will face a similar fine.

IPB holders failing to conduct any reclamation activity and nature conservation also have to pay Rp 50 billion worth of fine from each well in the work area. Article 16 Paragraph (1) of Government Regulation No. 25/2021 dictates that before relinquishing the work area, they need to conduct reclamation activity and conserve the environment.

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