Thursday, February 6, 2025

Jatam asks DPR to stop deliberation of mining law draft revision

Reading Time: 3 minutes
Gusty da Costa

Journalist

Editor

Interview

Mining Advoicacy Network (Jatam) has strongly condemned the draft revision of the 2009 Mining Law and demanded the government and House of Representatives (DPR) to stop the entire deliberation of law draft revision.

Alfarhat Kasman, a Jatam campaigner, said House’s Legislation Body’s (Baleg) revision of Mining Law No. 4/2009 is an effort by politicians in the House to plunder Indonesia’s natural resources, particularly minerals, systematically in group and ostensibly in legal manner.

“The plundering of natural resources is inseparable from the background and interests of political elites in the (presidential) palace and the parliament, the majority of whom come from business background,“ Alfarhat said in a statement made available to Indonesia Business Post on Wednesday, January 22, 2025.

An investigation by the Indonesia Corruption Watch (ICW) reveals that around 61 percent or 354 individuals out of 580 House members for 2024 -2029 period have background or affiliations with the business sector.

On January 21, 2025, the Baleg formally agreed on the fourth amendment to the 2009 Mining Law as a DPR initiative.

Likewise, Alfarhat said President Prabowo Subianto and his family also have direct interests in the mining business. Prabowo controls a number of coal concessionaires in East Kalimantan, including PT Nusantara Energy, PT Nusantara Kaltim Coal, and PT Erabara Persada Nusantara. Meanwhile, his younger brother, Hashim Djojohadikusumo, controls the Arsari Group, which owns more than two tin mining concessions in Bangka Belitung and recently bought shares in gold miner PT Tambang Mas Sangihe (Baru Gold), located on the small island of Sangihe, North Sulawesi.

Prabowo’s cabinet is also packed with businesspeople in the extractive industry sector. Based on Jatam records, at least 34 of the 48 ministers in the Red and White Cabinet are affiliated with business, with 15 of them related to extractive businesses, including Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, who has a nickel business in North Maluku.

Alfarhat also alleged that politicians “hijack” Article 33 of the 1945 Constitution to polish their image when prioritizing the granting of mining concession to universities and Micro, Small and Medium Enterprises (MSMEs). One of the basic arguments used In the law draft revision is that minerals and coal are natural resources that must be controlled by the State and used for the greatest prosperity of the people.

“This effort to involve universities in mining affairs can also be seen as a way for the government to ‘wash its hands’ on the welfare of academics. The state’s (government’s) incompetence in guaranteeing the welfare of academics is to be resolved in a deceitful way: letting the campus support itself by mining,” he said.

House response

Baleg chairman, Bob Hasan, has denied the accusation, saying that the law revision is in congruent with the needs of the people and the government’s economic growth target, and is held by carrying out affirmative action for certain sectors such as education, religious organizations, small and medium enterprises and individuals.

“They (academics and MSMEs) are encouraged and given opportunities to manage the mines. Most importantly, downstreaming is a national target expected to maintain the potential of natural resources to become finished goods for domestic and foreign interests as well as create jobs,” he said.

The Mining Law draft revision includes:

  1. Prioritizing the granting of mining business permit (IUP) with an area of less than 2,500 hectares to MSMEs.
  2. Providing a legal basis for granting mining business permit area ( WIUP) to religious community organizations.
  3. Prioritizing the granting of WIUP to universities.
  4. Prioritizing the granting of WIUP in the context of downstreaming.
  5. Management of Non-Tax State Revenue (PNBP) by the minister without clearly stating the authorized ministry.

Gusty da Costa

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

RoClean Indonesia, a joint venture between DESMI RoClean A/S of Denmark and PT Meredian Khatulistiwa of Indonesia, joins the oil spill response equipment production in Indonesia.
Former Indonesian Central Bank (BI), Burhanuddin Abdullah, perceives that the Daya Anagata Nusantara (BPI Danantara) is the answer to the problem of low investment in the country.
GAPKI says that Indonesia needs to have extended oil palm plantations to meet the needs of the mandatory program of mixing fuel oil (BBM) and biofuel (BBN) by 50 percent or B50 up to B100.
A poll by KedaiKopi reveals that as many as 72.5 percent of the people surveyed were satisfied with the performance of the 100 days of the government of President Prabowo.
Albeit the U.S. left the Paris Agreement, under these circumstances, Indonesia is still committed to taking steps to address climate issues under President Prabowo Subianto, a senior government official says.
Attorney General Sanitiar Burhanuddin says that the country has difficulty in implementing death penalty on foreign drug convicts due to obstacles in diplomatic relations.