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Mining permits for all?

National Innovation and Research Agency (BRIN) researchers have warned of the risks that arise when mining is managed by entities that are alien to the sector, such as religious organizations.

Editorial board (The Jakarta Post)
Jakarta
Wed, February 5, 2025

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Mining permits for all? Critical dissent: Protesters hold posters that read “Dipisahkan Qunut, Disatukan Tambang“ (Separated by Qunut, United by Mining) during a protest against Islamic group Muhammadiyah's decision to accept the government's offer of coal mining concessions in Sleman, Yogyakarta, on July 27, 2024. (Antara/Hendra Nurdiyansyah)
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eligious mass organizations, and now universities, will be allowed to mine, thanks to the revision of the Coal and Mineral Law, which the House of Representatives has tabled as an initiative bill, although it is not listed as a priority and lacks meaningful public consultation.

The fourth amendment of the Mining Law, if passed, will grant higher education institutions mineral and coal mining concessions, which the proponents say will provide universities with financial independence. While the revision may offer universities an alternative revenue source, the costs they and the nation will have to bear have largely been ignored.

The revision follows the policy of former president Joko “Jokowi” Widodo to award the country’s largest Muslim groups Nahdlatul Ulama (NU) and Muhammadiyah mining business permits (IUPs) in the final months of his term. Energy and Mineral Resources Minister Bahlil Lahadalia has confirmed that NU will take over the mining concession previously given to PT Kaltim Prima Coal, while Muhammadiyah will operate the mine that used to be controlled by PT Adaro Energy Indonesia.

With more than 3,200 registered universities across the country, we can imagine the magnitude of the impact of the bill on the country’s coal and mineral sector. Given the damage the extractive industry has done to the environment, we can also expect the destruction to worsen.

Moreover, the government has repeatedly boasted in international forums of its commitment to net zero emissions by transitioning to renewable energy and phasing out fossil fuels, including coal.

From the beginning, the decision to award religious mass organizations mining business licenses sparked debate. National Innovation and Research Agency (BRIN) researchers have warned of the risks that arise when mining is managed by entities that are alien to the sector, such as religious mass organizations.

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First, a lack of experience and competence, which can lead to poor mining practices. This has the potential to damage the environment and jeopardize the safety of workers.

Second, the potential for internal conflict that can weaken the organizational structure and hinder the implementation of mining activities. Third, weak oversight and regulation, which can lead to unsustainable mining practices and possible violations of the law.

Fourth, local economic instability if revenues from mining activities are not properly managed. Fifth, there is a risk of misuse of IUPs for personal gain, which can lead to corruption and misuse of natural resources.

The same risks face universities. There is no evidence that universities can effectively manage mining operations. Even if they were able to manage it as a business unit, it might not be in line with the spirit of higher education as a democratic public institution.

The integrity of higher education is at stake, as the tempting IUPs have the potential to transform universities from educational and scientific institutions committed to the common good into institutions with a corporate character that is subject to market mechanisms.

Through their critical voices, universities, like religious mass organizations, carry the moral responsibility to consistently remind the powerful of their mandate to bring prosperity and justice. Amid democracy backsliding, the IUPs will only help the government to silence campuses.

Students formed the backbone of public resistance to controversial public policies, such as the Job Creation Law, the revision of the Corruption Eradication Commission Law and the Criminal Code. The public hopes the students will display the same bravado in opposing the Mining Law revision, especially because the political elite appear likely to resort to the tyranny of the majority to pass the controversial bill.

There is not much we can expect from the revision of the Mining Law, except the destruction of the country’s rich biodiversity. If the Mining Law is to be revised, the amendment should aim at improving mining governance, rather than distributing as many licenses as possible.

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