News Letter

Post IG IGSS Monthly Newsletter Vol 4. No.2 (8)

‘New Dilemma’: Controversy on Granting Permits for Religious Mass Organizations to Manage Mining Businesses

There is an amendment to the Government Regulation that has been stipulated by President Jokowi regarding the implementation of mineral and coal mining business activities, which results in a ‘New Dilemma’. Previously, this regulation was regulated in Government Regulation No. 96 of 2021, but now it has changed to Government Regulation No. 25 of 2024, which was stipulated on May 30, 2024 (BPK, 2024).

The amendment to this regulation is stated in Article 83A Paragraphs 1–7 of The Government Regulation No. 25 of 2024, which regulates the granting of authority and priority for Special Mining Business Permit Areas, or “Wilayah Izin Usaha Pertambangan Khusus” (WIUPK), to Religious Mass Organizations, which can be considered Civil Society Organizations (CSOs). The implementation of the Government’s authority aims to empower and improve the welfare of the community (Indonesia, 2024).

However, this policy has generated controversy between the pros and cons among the communities of Religious Mass Organizations and civil society.

Pros and Cons

Pros

The pro side considers that this policy will have a positive impact. Some examples of Religious Mass Organizations that are well-known and respond positively to this policy are The General Chairman of the Executive Board of Nahdlatul Ulama (NU), Gus Yahya, and The Deputy Chairman of Majelis Ulama Indonesia (MUI), Anwar Abbas. They stated that this policy is a new innovation that can be used as a source of income for Religious Mass Organizations, and it is hoped that they can carry out their functions to bring about public welfare (Sakti Wira Yudha, 2024).

Cons

The cons are divided into two (2) categories:

Firstly, there are Religious Mass Organizations that are still alert and careful, such as Muhammadiyah Organization will look their capabilities first before implementing this policy (Marta, 2024).

Secondly, there are some Religious Mass Organizations that have refused this policy because they think that it will have a negative impact, such as Persekutuan Gereja-Gereja Indonesia (PGI), Perhimpunan Mahasiswa Katolik Republik Indonesia (PMKRI), Huria Kristen Batak Protestan (HKBP), Konferensi Waligereja Indonesia (KWI), and many other Mass Organizations (Costa, 2024).

Concerns Regarding to this Policy

Some Religious Mass Organizations oppose this policy because they have several concerns and several things to worry about, namely, as follows:

Firstly, this policy will neglect their main function as Religious Mass Organizations (Sakti Wira Yudha, 2024). It is feared that the participation of Religious Mass Organizations will be more likely to be oriented towards the economic sector, prioritizing business profits over their original vision and mission in the religious and social sectors.

The organization will neglect its purpose of spreading and strengthening the understanding of religious values and realizing social justice and community welfare. Thus, it will reduce public trust in the electability and popularity of Religious Mass Organizations.

Secondly, this policy will trigger conflicts between mining management Religious Mass Organizations and indigenous peoples when there are religious or opinion differences between these two sides. Thus, it will lead to tribal, religious, racial, and intergroup conflicts (Lolindu, 2024).

Thirdly, this policy is considered inadequate for its capabilities when handed over to Religious Mass Organizations. This is due to the limitations of Mass Organizations in understanding and experience in managing high-risk mines. One of the purposes of Religious Mass Organizations should be to protect the environment, but due to the mismanagement of mines by inappropriate parties, it will cause environmental damage and have the potential to harm the Indonesian economic sector (Irsyad, 2024).

‘Innovative Solutions’ or ‘New Risks’?

The amendment policy that have been established by President Jokowi have generated controversy, both pros and cons. On the one hand, this policy does have an ‘Innovative Solution’ because it is considered to be able to utilize the economic potential of Religious Mass Organizations and can manage the welfare of the community.

However, on the one hand, it creates ‘New Risks’ when we look at the whole controversy, both pros and cons. The implementation of this policy is more likely to have ‘New Risks’ than ‘Innovative Solutions’.

The author argues that the implementation of this policy will trigger abuse of power because this policy can be considered as ‘Patronage Politics’ or ‘Politik Bagi-bagi Kue’ (Carina, 2024). This political practice implemented by dominating and allocating the power over resources that are only distributed to certain groups, so this will have a negative impact on the mining industry in Indonesia. This potential abuse of power can lead to corruption, nepotism, injustice and reduced public trust in the Government and Religious Mass Organizations.

The author also argues that this policy will trigger the ‘Politicization of Religion’, one of which is by strengthening the political support of several religious groups that have a large mass to influence and control public opinion (Nadeak, 2024). Indirectly, it’s triggered ‘Oligarchy’ and ‘Reciprocal Politics’ between the Government and Religious Mass Organizations. And, if we remember that the granting of this permit was initiated by President Jokowi’s promise to Nahdlatul Ulama (NU) would provide Mining Business Permits, such as for the coal and nickel mining sectors, in December 2021 during Nahdlatul Ulama (NU) Congress (Suhamdani, 2024). There is a political influence in granting mining permits, and it can be used as a ‘tool’ to strengthen political power.

This policy will result in the embezzlement of mining funds, unfair granting of mining permits and contracts to companies because they will be based on a strong patronage relationship or close relationship with the Religious Mass Organizations. In addition, this policy will lead to reduced transparency, and accountability due to the lack of a strict monitoring mechanism for gold mining activities.

Efforts to Prevent ‘New Risks’ and Realize ‘Innovative Solutions’

In order to avoid the controversy of this policy, the Government should make more detailed regulations on how Religious Mass Organizations in mining management technically, practically, and managerially. This can be done by the Government in several ways, namely as follows:

First, conduct the technical and managerial training in mining management for Religious Mass Organizations. Second, collaborate or cooperate with several educational institutions and international institutions by providing resources on mining sector training. Third, approach the community and involve local communities in the decision-making process (Zuada, 2024). Fourth, increase transparency by providing assistance and strict supervision by establishing an independent supervisory body that involves several groups of society, such as civilians, academics, and environmental experts.

Lastly, but the most important is…

The Government is obliged to conduct a review and evaluation of the policy by involving all stakeholders, such as Religious Mass Organizations, Central and Regional Governments, Non-Governmental Organizations (NGOs) in the environmental sector, and local communities.

If necessary, the Government can revise this policy if it is felt that the implementation of Government Regulation No. 25 of 2024 is not in accordance with its objectives, which is to ensure the welfare of the community.

By implementing these efforts, it is hoped that the Government and the community can ensure compliance, supervise, and monitor regulations before, during, and after the implementation of mining management activities.

References

BPK, J. (2024, Mei 30). Perubahan atas Peraturan Pemerintah Nomor 96 Tahun 2021 tentang Pelaksanaan Kegiatan Usaha Pertambangan Mineral dan Batubara. Retrieved from Database Peraturan: Pemerintah (PP) Nomor 25 Tahun 2024: https://peraturan.bpk.go.id/Details/286980/pp-no-25-tahun-2024

Carina, F. N. (2024, Juni 02). Kompas. Retrieved from Bantah Bagi-bagi Kue dengan Izinkan Ormas Kelola Pertambangan, Menteri LHK: Ayo Lihat Dasarnya… : https://nasional.kompas.com/read/2024/06/02/16302801/bantah-bagi-bagi-kue-dengan-izinkan-ormas-kelola-pertambangan-menteri-lhk

Costa, G. d. (2024, Juni 10). Indonesia Business Post. Retrieved from Government Offers Coal Mining Concessions to Six Religious Organizations: https://indonesiabusinesspost.com/insider/government-offers-coal-mining-concessions-to-six-religious-organizations/

Indonesia, P. R. (2024). PERATURAN PEMERINTAH REPUBLIK INDONESIA NOMOR 25 TAHUN 2024 TENTANG PERUBAHAN ATAS PERATURAN PEMERINTAH NOMOR 96 TAHUN 2021 TENTANG PELAKSANAAN KEGIATAN USAHA PERTAMBANGAN MINERAL DAN BATUBARA. Jakarta: Presiden Republik Indonesia.

Irsyad, I. (2024, Mei 06). VOI. Retrieved from Controversy on Granting Mining Permits to Mass Organizations: A Way Forward or Regulatory Blunder?: https://voi.id/en/opini/378778

Lolindu, M. (2024, Juni 07). DW News. Retrieved from Jatam: Ormas Keagamaan Boleh Kelola Tambang? Rawan Konflik!: https://www.dw.com/id/jatam-ormas-keagamaan-boleh-kelola-tambang-rawan-konflik/a-69296095

Marta, M. F. (2024, Juni 06). Kompas. Retrieved from Bagi-Bagi Izin Tambang ke Ormas, Lebih Banyak Manfaat atau Mudaratnya?: https://www.kompas.id/baca/ekonomi/2024/06/06/pemberian-izin-tambang-prioritas-kepada-ormas-keagamaan-lebih-banyak-manfaat-atau-mudaratnya

Nadeak, F. F. (2024, Juni 05). CNN Indonesia. Retrieved from Bisakah Ormas Keagamaan Kelola Tambang Usai Dapat Karpet Merah Jokowi?: https://www.cnnindonesia.com/ekonomi/20240605061528-85-1105955/bisakah-ormas-keagamaan-kelola-tambang-usai-dapat-karpet-merah-jokowi

Sakti Wira Yudha, A. R. (2024, Juni 13). Detik News. Retrieved from Ormas Agama Kelola Tambang, Untung atau Buntung? : https://news.detik.com/kolom/d-7389066/ormas-agama-kelola-tambang-untung-atau-buntung

Suhamdani. (2024, Juni 13). Joglo Semar News. Retrieved from Pemberian Izin Tambang dari Jokowi Picu Prokontra, Ini Ormas Keagamaan yang Menolak dan yang Menerima: https://joglosemarnews.com/2024/06/pemberian-izin-tambang-dari-jokowi-picu-prokontra-ini-ormas-keagamaan-yang-menolak-dan-yang-menerima/

Zuada, L. H. (2024, Juni 12). The Conversation. Retrieved from Apakah Ormas Keagamaan Punya Kapasitas untuk Menambang?: https://theconversation.com/apakah-ormas-keagamaan-punya-kapasitas-untuk-menambang-232025

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