The Ministry of Energy and Mineral Resources (ESDM) has identified anomalies in the management of natural resources (SDA), highlighting areas rich in resources yet facing high poverty rates.
M. Idris F. Sihite, Strategic Planning Advisor to the Minister of ESDM, told a Focus Group Discussion (FGD) on Mining Governance in South Sumatra, held in Palembang recently that discussions with the National Development Planning Agency (Bappenas) revealed these discrepancies.
“Based on the results of discussions between the ESDM Ministry and Bappenas, which concluded that there is an anomaly in the management of natural resources in a number of regions in Indonesia that are rich in natural resources, the poverty rate is quite high,” Idris said as quoted from the ESM Ministry website on Sunday, July 21, 2024.
One notable example is South Sumatra, which, despite its vast coal reserves and significant contributions to state revenue, still struggles with high poverty levels.
Sihite emphasized that addressing these anomalies requires comprehensive and sustained efforts from all stakeholders, including the government, businesses, civil society, and academics.
He pointed out that illegal mining operations in South Sumatra contribute significantly to this issue, calling for a reformulated strategy to tackle unlicensed mining using scientific evidence and focusing on major offenders.
“South Sumatra province is one of the largest PETI locations in Indonesia. PETI is a criminal act of mining in the mineral and coal sub-sector with a special offense (lex specialis) outside the Criminal Code which contains criminal sanctions (Articles 158 to 164 of Law No. 3/2020),” Idris said.
He stressed the importance of scientific methods to identify and prosecute illegal mining activities, ensuring accurate calculation of state losses.
“All mining commodities have an identity like DNA, so they can be identified using a scientific evidence approach, the basis of which is measured in the laboratory. Scientific evidence is irrefutable evidence to calculate state losses from illegal mining practices,” he said.
Idris asked public prosecutors to adopt new approaches, including anti-money laundering techniques and disrupting supply chains, to effectively combat illegal mining and recover state losses.
