Indian Envoy Appeals to Ministry to Reinstate PT Bara Energi Makmur’s License After Court Victory
Main Takeaways
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JAKARTA, Investortrust.id — The Indian Ambassador to Indonesia, Sandeep Chakravorty, has formally appealed to Minister of Investment Rosan Perkasa Roeslani to reinstate the coal mining license of PT Bara Energi Makmur after the State Administrative Court in Jakarta annulled its 2022 revocation.
The case, closely watched by the mining sector, has spanned over a decade and illustrates the tension between regulatory procedures and investor certainty.
From Acquisition to Development
In 2011, India’s Emmsons International Limited, a publicly-listed company with over three decades in agriculture and energy, acquired PT Bara Energi Makmur (PT BEM), holder of a coal concession in East Kutai, East Kalimantan, based on the PTUN Jakarta decision document seen by Investortrust on Wednesday, August 13, 2025.
The investment was positioned as part of a broader plan to develop supply chains for Indonesian coal while building local infrastructure.
Between 2011 and 2019, PT BEM undertook feasibility studies, secured environmental permits, and built access infrastructure. The PTUN document records that the company complied with reporting obligations and investment commitments during this period.
Pandemic Disruption and Regulatory Pressure
The COVID-19 pandemic in 2020–2021 disrupted operations, limiting field activities and delaying certain development milestones. Nonetheless, PT BEM continued to file mandatory reports and maintain site readiness.
In mid-2022, the Investment Coordinating Board (BKPM) cited “administrative non-compliance” and revoked PT BEM’s Mining Business License (IUP). The revocation, according to BKPM, was linked to interpretations of activity and reporting requirements, despite the company’s submission of documentation.
Legal Challenge
On Aug 23, 2022, PT BEM filed a lawsuit at PTUN Jakarta seeking to annul the revocation letter. Over the course of the proceedings, the company submitted evidence of continuous compliance, including environmental monitoring reports, proof of site works, and correspondence with authorities.
Witness testimony from both sides highlighted differing interpretations of procedural requirements, the court document showed. BKPM argued that on-the-ground progress was insufficient; PT BEM countered that external disruptions, chiefly the pandemic, had hindered timelines but not compliance.
Court Ruling
On Aug 12, 2025, PTUN ruled in favor of PT BEM. The court declared the revocation “null and void” and ordered the Ministry of Investment to restore the IUP. Judges concluded that BKPM’s decision did not sufficiently consider the company’s pandemic-era challenges and its documented efforts to fulfill investment obligations.
The court found that the ministry had the delegated authority to issue the revocation. However, it determined that the revocation of the IUP Operation Production was procedurally contrary to Articles 185-187 of Government Regulation Number 96 Year 2021, which generally require a phased imposition of sanctions, i.e., written warning, temporary cessation, then revocation unless specific, unproven conditions are met.
The court also found that the revocation was substantively contrary to Article 188 of the same regulation, as none of the conditions allowing for immediate revocation, including criminal violation, environmental damage/poor mining practices, or bankruptcy, were proven against PT BEM.
The Court concluded that the revocation violated the principles of legal certainty and carefulness, which are part of the General Principles of Good Governance (AAUPB).
Diplomatic Appeal
Following the decision, Ambassador Chakravorty wrote to Minister Rosan, appealing for the reinstatement of BEM's coal mining license
“As the company’s investment in Indonesia is a contributor to our bilateral business and energy relations, I would like to seek your kind support in issuing necessary directives to notify the restoration of the company’s mining license,” Chakravorty wrote in a letter seen by Investortrust.id.
He framed the case as emblematic of India–Indonesia business cooperation, urging prompt execution of the court’s order to strengthen investor trust.
"As the company's investment in Indonesia is a contributor to our bilateral business and energy relations, I would like to seek your kind support and intervention in issuing necessary directives to the concerned authorities for notifying the restoration of the company's mining license, as per the PTUN judgement," Chakravorty wrote.
Investment Climate Implications
Industry observers say the case underscores the importance of legal certainty in Indonesia’s mining sector. Sururudin, the legal counsel for PT Bara Energi Makmur, said earlier on Tuesday, the ruling reflected a positive signal for foreign investors operating in Indonesia and demonstrated the state’s commitment to maintaining a conducive investment climate.
With foreign direct investment in mining contracting in the second quarter of 2025, the prompt restoration of PT BEM’s license could signal that the government respects judicial rulings and values long-term investor commitments.
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