Heaptalk, Jakarta — In an effort to improve community welfare, President Joko Widodo (Jokowi) has permitted religious community organizations to manage mining operations.
This permission is outlined in Government Regulation Number 25 of 2024, which amends Government Regulation Number 96 of 2021 on Implementing Mineral and Coal Mining Business Activities, specifically in Article 83A Paragraph (1) signed on May 30. The regulation states that to enhance community welfare, Special Mining Business Permit Areas (WIUPK) can be prioritized for business entities owned by religious community organizations.
In more detail, the WIUPK referred to in paragraph 1 are former Coal Mining Concession Work Agreement (PKP2B) areas. Additionally, the Special Mining Business Permit (IUPK) and/or the share ownership of religious community organizations in the business entity cannot be transferred or assigned without the minister’s approval.
The regulation also stipulates that religious community organizations in the business entity must hold most shares and control the entity. The business entities mentioned are prohibited from cooperating with the previous PKP2B holders and/or affiliates. Furthermore, the WIUPK offers are valid for five years from the effective date of this regulation.
Further provisions regarding prioritizing WIUPK offers to business entities owned by the organizations will be regulated in a Presidential Regulation (Perpres). Previously, the government planned to distribute mining business permits (IUP) to community organizations by revising Government Regulation 96 of 2021 on implementing Mineral and Coal Mining Business Activities. This plan received criticism since the organizations were deemed to lack the expertise to manage the mining sector. Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia previously explained that companies holding IUPs do not entirely manage them independently but rather with the help of contractors.
Similarly, religious community organizations will seek other partners to manage the IUP. “Managed professionally, finding good partners. If some say religious organizations do not have the specialization to manage this, do companies with IUPs manage them independently?” Jokowi asked. He further emphasized that religious community organizations played a significant role in Indonesia’s independence, so it is appropriate to grant them IUPs to manage mining businesses.
Meanwhile, Gomar Gultom, the Chairman of the Communion of Churches in Indonesia (PGI), welcomed Jokowi’s breakthrough. According to Gomar, granting these permits shows President Jokowi’s commitment to involving as many community elements as possible in managing the nation’s wealth. This step reflects the President’s appreciation for religious community organizations that have contributed to building the country from the beginning.
