Despite resistance from various parties, President Joko Widodo signed Government Regulation (PP) No. 25 of 2024, amending Government Regulation No. 96 of 2021 regarding the Implementation of Mineral and Coal Mining Business Activities. This regulation prioritizes special mining business permits (WIUPK) for religious organizations.
UGM Energy Economics Analyst Dr. Fahmy Radhi believes President Widodo’s policy is more politically motivated than economically. Although it is purportedly a realization of the president’s campaign promise, granting WIUPK is suspected to be an effort to leave a legacy so that the president remains beloved by religious organization members after stepping down in October.
“The policy of granting WIUPK to religious organizations is very inappropriate and, in my opinion, tends to be a blunder,” he said at the UGM campus on Tuesday (Jun. 4).
The reason is that religious organizations lack the capability and financial resources to conduct mining exploration and exploitation. In such conditions, it is anticipated that religious organizations will only act as brokers by transferring the WIUPK to private mining companies.
Moreover, mining business activities in Indonesia still exist in gray areas, along with criminal mining activities. If religious organizations were to operate mining businesses themselves, they would undoubtedly enter these gray areas, potentially dragging them into the illicit mining world.
Dr. Radhi argues that if the government genuinely aims to improve people’s welfare through religious organizations, it should not be done by granting WIUPK. Instead, the government could provide a Profitability Index (PI) to religious organizations, similar to what mining companies offer to local governments.
“Granting a PI is more in line with the capacity and characteristics of religious organizations, posing no risk and not potentially dragging them into the dark mining world. Therefore, the government should cancel or revise PP No. 25/2024, as it carries more harm than benefits,” Dr. Radhi asserted.
Author: Agung Nugroho
Photo: Freepik.com