T

he House of Representatives has demanded that the Corruption Eradication Commission (KPK) strengthen its monitoring of the issuance of mining permits in an effort to cut red tape in the country’s mining sector.

Speaking at the House of Representatives complex in Jakarta on Wednesday, lawmakers of House Commission VII overseeing energy affairs said with maximum supervision and monitoring from the anti-graft body, the potential of state losses of non-tax state revenue (PNBP) from the mining industry could be eliminated.

“The result of the monitoring could also be a reference for those of us who are currently revising the law on mineral and coal […]. So, any aspects that cause state financial losses could be regulated,” said Democratic Party lawmaker Mulyadi, who serves as a deputy chairman of the commission.

The legislators requested the assistance of the KPK in monitoring the issuance of licenses in response to the recent disclosure of a bribery case involving Southeast Sulawesi Governor Nur Alam, who was accused of issuing dubious mining licenses for personal gains.

The KPK earlier said that a mining permit issued by Nur Alam violated regulations as the concession was located in a protected forest. As a consequence, the mining operations in the area could cost up to Rp 3.5 trillion (US$268.67 million) in environmental losses, including the loss of drinking water sources of local people.

The anti-graft body accused Nur Alam of allegedly having received commission on the issuance of mining permits from nickel company Anugrah Harisma Barakah (AHB). He was named a suspect in August but had not been detained until now.

Mulyadi said he hoped the KPK could provide data and information related to the monitoring of the issuance of permits to the Energy and Mineral Resources Ministry as Commission VII was eager to prevent such occurrences in the future.

Golkar Party lawmaker Fadel Muhammad, another deputy chairman of the commission, suggested that the KPK give early admonition to the local and central governments if there were indications of corruption in the energy and mining sectors.

It would be good for both those suspected of issuing illegal mining permits and for the state as those suspected might back off to maintain their good names while the state would not suffer loses, he added.

Responding to the suggestions, KPK chairman Agus Rahardjo said the anti-graft body had provided all the data on its website, www.kpk.go.id, and also issued a warning several times to companies and institutions in various sectors, but admitted they were soft warnings.

“We usually give a warning stating that there is a problem in the sector that needs to be fixed,” he said.

Such warnings were considered sufficient for related parties to be made aware, he argued.

“All we need to do after that is monitor them on whether they will follow up on the warning,” Agus said.

In 2009, the KPK investigated former Pelalawan regent Tengku Azmun Jafar for the issuance of forestry permits to seven companies Tengku allegedly owned in the region, a part of Riau province. The KPK calculated that state losses in the case reached Rp 1.3 trillion. However, in June, Tengku was acquitted of all charges against him. (wnd)