Minister of Investment /Head of Investment Coordinating Board (HKPM), Bahlil Lahadalia, welcomes the decision by Muhammadiyah to receive government’s offer of coal mining concession.
Bahlil said the government will give the best former coal mining contract concession for Muhamadiyah, the country’s second largest Muslim organization
“The mining concession for Muhammadiyah will not be the one formerly issued to Kaltim Prima Coal, but I need to report first to the President about it. If I tell you [journalists] first and then report abour it to the president, I will be reshuffled,” Bahlil said jokingly on Monday, July 29, 2024.
President Joko “Jokowi” Widodo signed on May 30, 2024, Government Regulation No. 25/2024 that allows the granting of mining permit for mass and religious organizations. The 2024 regulation is a revision to Government Regulation No. 96/2021 on the Implementation of Mineral and Coal Mining Business Activities.
Bahlil said that he had communicated with Muhammadiyah leaders on the legal aspect, the goal, the management and seriousness of the government’s offer before they eventually decided to accept it.
“What is important is that they submit the proposal. If they have submitted it and meet all the requirement, we will do a screening,” he said.
Bahlil said futher that the government has good intention on mass organization as the mining concession will not be given to the organization but its business unit so the organization can secure legitimate income. The revenue can be used to finance schools’ operation and help poor people.
“In my opinion, this country is too late to grant the concession to religious organizations. In a discussion with [President-elect] Pak Prabowo, it is agreed that other organizations that have contribution for the state will be given the mining concession as well,” he added.
Besides Muhammadiyah, he said, there are three or four more religious organizations that have submitted proposals for mining concessions. “The Nahdatul Ulama has just finalized their proposal,” he cited.
Bahlil said that he is in communication with Christian organizations, including the Indonesian Communion of Churches (PGI) and the Bishops’ Conference of Indonesia (KWI) on the mining concession.
Muhammadiyah welcomes
In a statement released on Sunday July 29, 2024, Muhammadiyah leaders said that upon analyzing inputs, conducting studies, reviewing criticisms on mine management, and views from academics and mine managers, environmental experts, universities, assemblies and institutions within the Muslim organization, Muhammadiyah and its board of leadership decided on July 13, 2024 that it is ready to manage the mining business in accordance with Government Regulation No. 25/2024.
