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Ministry opens possibility of granting mineral concessions to religious groups
Initially the government limited the licenses to coal deposits previously controlled by miners holding work contracts (PKP2B) because other minerals were considered more difficult to extract.
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Heavy machineries operate on May 24, 2024, at a coal mining site at Sumber Batu village, Meureubo district, West Aceh regency, Aceh. (Antara/Syifa Yulinnas)
T
he government said that it is possible to grant mineral mining concessions for business entities backed by religious groups as they are eligible to apply along with many other companies.
Lana Saria, natural resource economics expert at the Energy and Mineral Resources Ministry, said on Wednesday that the government would not prioritize religious groups as it did with coal concessions.
“It is possible, but they are not the priority. They can apply in an open bid for mining permits that the government has revoked as per recommendations from local governments,” Lana said in an online discussion with National Mandate Party (PAN).
President Joko “Jokowi” Widodo initiated the move to hand coal concessions to business entities backed by religious groups on May 30 through a regulation stipulating that the issuance of special mining license areas (WIUPK) could be expedited for business entities owned by religious organizations “to improve people’s welfare.”
Read also: NU mining permits slammed as pork barrel politics
The move followed the Jokowi administration’s decision in 2022 to revoke more than 2,000 mining rights for concession holders found to be inactive, unproductive or who had transferred their licenses to other parties, in an effort to improve permit governance and land distribution.
These licenses were previously strictly limited to coal deposits controlled by miners holding work contracts (PKP2B) because other minerals were considered more difficult to extract.
