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NU mining permits slammed as pork barrel politics
Observers claim President Joko "Jokowi" Widodo is paying back Nahdlatul Ulama for its political support with coal mining permits.
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Heavy machinery operates in a coal mine at Sumber Batu village, Meureubo district, West Aceh regency, Aceh on May 24, 2024. (Antara/Syifa Yulinnas)
T
he move by President Joko “Jokowi” Widodo’s administration to grant state-owned mine concessions to Indonesia’s largest Muslim organization Nahdlatul Ulama (NU) is facing mounting scrutiny, with observers describing it as pork barrel politics and a reward for the group’s support for the President.
During an event in Bekasi, West Java, on Sunday, Investment Minister Bahlil Lahadalia said the ministry was in the process of issuing a mining operation permit (IUP) for the NU central executive board (PBNU).
“After discussions with several ministers and receiving permission from President Jokowi, we decided to give NU a mining concession that holds fairly large coal reserves, so that NU can optimize its [development],” he said.
Bahlil’s announcement came only a few days after Jokowi signed a government regulation (PP) allowing religious organizations to manage state-owned mines. The regulation stipulates that the issuance of special mining license areas (WIUPK) can be expedited for business entities owned by religious organizations “in order to improve people’s welfare.”
To get the permit, the PP requires the religious organization to have a controlling stake in a business entity. The license cannot also be transferred without the approval of the energy and mineral resources minister.
NU chairman Yahya Cholil Staquf lauded the government’s decision to allow religious organizations to hold mining permits.
“It’s a bold move and an important step forward as it could help better distribute the benefits of mining activities to the public,” he said in a statement on Monday, thanking Jokowi for the policy.
