Disapproving The Government Of Extension Of Operational Permits Of PT Vale, Member Of Commission VII DPR: Contributions To Local Governments Very Little

Member of Commission VII DPR RI Mulyanto asked the government not to extend PT Vale's operational permit which will expire in the near future.

The reason was, in a Meeting with Opinions a few months ago the Governor of the mining area of PT Vale revealed that PT Vale's contribution was only small for the local government and the community around the mine.

The governors of South Sulawesi, Central Sulawesi and Southeast Sulawesi Provinces strongly rejected the extension of PT Vale's permit. The reason is that the contribution of this company to the local government and the community around the mine," he told the media, Tuesday, January 10.

For this reason, he asked PT Vale to improve the commitment to improve downstream performance and increase the contribution to the local government and the community, as a condition for extending operational permits.

Mulyanto explained, if the operational permit of PT. Vale is not extended, then the mining area will be prioritized to BUMN/BUMD.

"So without acquisition, or in other words, one hundred percent of the company's shares will automatically belong to BUMN/BUMD," he continued.

Meanwhile, if an extension is given, then according to the Minerba Law, Indonesia's shares should be the majority of 51 percent. As for the additional shares, the government must buy them.

The calculations must be accurate. Do not let the stock mark up so that state money is not sucked in. Also related to the source of MIND-ID funding to acquire these shares. The experience of the last PT Freeport Indonesia acquisition case must be studied seriously, "explained Mulyanto.

So far, he continued, Commission VII of the DPR RI has received a lot of input from the public regarding the performance of PT. Vale.

Generally, they complain that the existence of PT Vale is considered not committed to the applicable regulations, so that people do not feel the benefits.

It is known that the mining contract for Vale Indonesia will expire in December 2025. PT Vale itself has not applied for a contract extension permit.

Previously, the refusal to extend PT Vale Indonesia's permit strengthened in the General Opinion Meeting (RDPU) of Commission VII DPR RI with governors from South Sulawesi, Central Sulawesi, and Southeast Sulawesi.

The three governors unanimously stated that their aspirations would not provide the option of extending the mining contract for PT Vale Indonesia which would expire in December 2025.

A number of these rejections emerged ranging from contributions that were considered minimal, the size of the idle land or not cultivated, until the obligations to the environment had not been completed.