Thursday, July 4, 2024

ESDM ministry opens mineral mining management to religious mass organizations

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The Ministry of Energy and Mineral Resources (ESDM) said that business entities of religious mass organizations (ormas) also have the opportunity to manage mineral mining in Indonesia although the priority special mining business permit (WIUPK) area on offer are for coal mining.

The ministry said that religious mass organizations that want to manage must follow the procedures, such as paying data and information compensation fees (KDI).

“One can take part in the auction that is open to former IUPs that have been revoked. It is the business entity of the religious mass organization that can participate, but not the organization itself,” Lana Saria, Expert Staff for Natural Resource Economics at the Ministry of ESDM, said on Wednesday, June 26, 2024.

She cited the government’s reasons for giving coal mining management to mass organizations.

“Coal commodities have a relatively low level of mining difficulty and can directly benefit the community,” she said.

Article 83A of Government Regulation No. 25/2024 stipulates that the WIUPK offering is to provide equal opportunities to all parties to manage natural resources.

“This aims to empower business entities owned by religious organizations,” she said.

Lana said further that the WIUPK offered to religious organizations is the area under the former Coal Mining Business Work Agreement (PKP2B) which was shrunk.

“The former PKP2B area is given so that there is no need to open new land that has not been determined,” she said.

In addition to Government Regulation No. 25/2024, the government is also preparing derivative regulations or technical instructions regarding the granting of WIUPK which will be stated in the revision of Presidential Regulation No. 70/2023.

“Currently it is being prepared by the Ministry of Investment or BKPM, but as a general overview, the progress or process of granting will be carried out by the Land Use Arrangement and Investment Arrangement Task Force,” she said.

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