The Ministry of Energy and Mineral Resources (ESDM) has identified two options of mining location previously under the Coal Contract of Work (PKP2B) that will be allocated to the Muslim organization Muhammadiyah.
Minister of ESDM, Bahlil Lahadalia, said the land options are likely to be former mining sites owned by PT Adaro Energy or PT Arutmin Indonesia.
“The former PKP2B land, most likely, is the ex-Adaro or ex-Arutmin. We are offering good options, these two,” Bahlil Lahadalia said on Monday, August 26, 2024.
The government plans to distribute a special mining business permit area (WIUPK) of 96,854 hectares to religious organizations. According to data from Katadata.co.id, the former PKP2B land owned by PT Adaro Energy covers 7,437 hectares, while the land previously owned by PT Arutmin Indonesia spans 22,900 hectares.
Bahlil cited that the government is preparing a sizable mining area for Muhammadiyah, emphasizing that in choosing a mining site, what matters most is the potential reserves, not just the size of the land.
However, Bahlil could not provide further details regarding the distribution of this land as he had just transitioned from being the Minister of Investment to the Minister of ESDM last week.
Currently, details regarding religious organization mining permits are outlined in Presidential Regulation No. 76/2024 on the technical permits for mining for organizations, signed last July. Under this regulation, the authority over religious organization mining permits is given to the Minister of Investment.
“I have already given instructions for follow-up, and I will provide further updates on the progress,” Bahlil said.
Previously, while serving as Minister of Investment, Bahlil promised to offer the best coal mining location for Muhammadiyah. He assured that the special mining business permit (IUPK) provided to Muhammadiyah would not be the same as that given to Nahdlatul Ulama (NU), which was allocated a former mining site of PT Kaltim Prima Coal (KPC).
“God willing, we will provide the best former coal contract of work (PKP2B) outside of KPC,” Bahlil said.
To finalize the details of the mining concession location, Bahlil plans to first report to President Joko Widodo for approval. He has also discussed with the Coordinating Minister for Human Development and Cultural Affairs, Muhadjir Effendy, who has been appointed by Muhammadiyah as the Head of Muhammadiyah’s Mining Management Team.
Bahlil said that granting mining concessions to religious organizations aims to promote sustainable mining practices by prioritizing environmental aspects in management.
According to him, providing IUPK to religious organizations is also an elegant way for the government to give back to organizations that have significantly contributed to defending society during the struggle for independence and in resolving social conflicts within the country.
“In my opinion, the government is late in providing this retribution, because the income from mining operations will be used to build schools, health programs, help the poor, and support those in need,” Bahlil said.
For this reason, Bahlil believes that the WIUPK given to religious organizations will be put to good use.
“Rather than giving the WIUPK to other entities that are uncertain about when it will be used, it is better to give it to organizations that will clearly utilize it,” he added.
