Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia has shown a careless behavior in activating the mining business permit of a gold mining company in Aceh province, according to an expert.
Center of Energy and Resource Indonesia (CERI) Executive Director Yusri Usman said that previously the minister had already revoked the licence of PT Linge Mineral Resource in Central Aceh. The activation of the company’s license may cause a possible lawsuit against a government official for “unlawful act”.
“Without considering Law No. 11/2006 on Aceh administration, especially the Qanun (Islamic bylaw) No. 15/2017 [on mineral and coal mining management], which is a revision of the Qanun No. 15/2013 which stipulates that the management of mineral and coal mining is the authority of Aceh administration,” Usman said on October 13, 2022.
PT Linge Mineral Resource is controlled by Bakrie & Brothers’ subsidiary PT Bumi Resources Minerals Tbk through its subsidiary PT Bumi Sumberdaya Semesta (BSS). BSS entered into Linge through PT Andalan Sekar Bumi and Singapore-based Calipso Investment Pte. Ltd.
Usman said that according to the acting head of Aceh’s energi and mineral resource agency Mahdinur, after head of the Investment Coordinating Board revoked the mining business permit of PT Linge Mineral Resource as foreign investment, based on the law, the status of the mining concession has become free and under the authority of the Aceh ‘s government.
“There is no authority for the head of BKPM to revoke its own decree [on Linge] dated April 5, 2022. When he revoked the decree, it was unlawful act,” said Usman.
Therefore, Usman said, Linge’s mining concession was currently become a free area and is under the authority of Aceh administration. “Those who are interested [in this mining permit] can file a petition based on Aceh Qanun to manage the natural resources,” he added.
Chaotic policy
Usman explained that based on article 173 A of the Mineral and Coal Mining Management Law No. 3/2020, the transfer of authority on mining did not apply for provinces with special status law that regulated specifically the management of the mineral and coal mining including in Aceh’s qanun.
Based on the law, the Aceh administration has a full authority to manage the coal and mineral resources in the province with an exception that the coal and mineral potential located in the cross province or more than 12 miles of the coast line in the sea territory.
“However, mining business permit that was revoked by Bahlil is in the territory of Aceh. Therefore, the minister’s policy is chaotic. It should be reported to President Joko “Jokowi” Widodo so he can be sanctioned firmly, because the Acehnese can be angry with the government on the policy,” Usman said.
Moreover, Usman said the head of Aceh’s energy and mineral resources agency has stated that the agency never received notification from the government on a ministerial decree dated August 30, 2022, issued by Bahlil on the reactivation of Linge’s mining permit.
Indonesia Business Post tried to reach Bahlil on the issue but did not receive any response from the minister or his office.
