The corruption case at PT Timah is like the tip of an iceberg where the misuse of mining business permits is not entirely uncovered. There is a high likelihood that similar corruption schemes will occur in other mining companies.
However, efforts to prevent and eradicate corruption in this natural resources sector are reportedly not fully optimal due to the weak government oversight and law enforcement systems that tend to favor business players.
Yuris Rezha Kurniawan, a researcher at the Center for Anti-Corruption Studies (Pukat) at the Faculty of Law, Universitas Gadjah Mada, stated this in response to allegations of corruption in the tin commodity trade under the Mining Business License (IUP) of PT Timah Tbk from 2015-2022, which the Indonesian Attorney General’s Office is currently handling.
In the case of alleged corruption at PT Timah, Kurniawan said the Attorney General’s Office is pursuing financial losses to the state and the economy due to the purchase of tin supplies that did not follow procedures at prices above the standard.
“If we look at the case presented by the Attorney General’s Office, there is also an issue that needs to be highlighted regarding collusion involving illegal mining businessmen,” said Kurniawan on Tuesday (Apr. 2).
He explained that if the allegations of corruption at PT Timah are proven, this incident would be solid evidence of collusion between the government through state-owned companies and corrupt business people.
Illegal mining companies should be legally prosecuted; instead, they are embraced and facilitated. They are even made partners in exploiting natural resource wealth.
“Strangely, this also escapes government oversight and law enforcement,” he emphasized.
Kurniawan mentioned several typical modus operandi in cases of corruption in natural resources. For example, bribery to expedite the granting of improper permits and the underreporting of state revenues due to data manipulation of natural resource production are common.
According to Kurniawan, the alleged corruption case at PT Timah showcases how illegal mining practices, which should be part of government oversight and law enforcement, are instead given a ‘red carpet’ to conduct their business.
He explained, “One of the difficult factors in combating corruption in the natural resources sector is the weakness of government oversight and law enforcement, which tends to favor businesses.”
Kurniawan questioned how illegal mining operations, which violate the law, can be facilitated as partners. He believes the Attorney General’s Office can further investigate the weak oversight and the possibility of turning a blind eye to illegal mining operations, especially if such practices have been ongoing for years.
“If there is evidence of negligence, and especially if there is evidence of bribery to turn a blind eye to these illegal practices, then it is possible that other actors could be implicated in the development of this case,” he said.
He argued that this corruption case within PT Timah is another example of corruption in the mining sector. Therefore, the government must strongly commit to implementing various prevention measures because corruption in natural resources will not be resolved solely by developing systems for business convenience.
“But it also requires tighter supervision, management of conflicts of interest between officials or ministers and companies in the natural resources sector, and law enforcement independent of business influence,” he concluded.
Author: Gusti Grehenson
Photo: Investor.id