Bahlil's Plan On IUP Managed By Ormas, Observer: Blunder's Decision

Energy economy expert from Gadjah Mada University (UGM) Fahmyani assessed that the plan of the Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia to distribute mining business permits (IUP) to religious community organizations (ormas) was a blunder decision.

According to Fahmy, the decision was not right because religious organizations are not businesses that can process IUPK, including not having the capability needed.

"The business managing it (IUP) is not easy, let alone being advised to the public," he said when contacted by VOI, Tuesday, April 30.

Fahmy admitted that he was worried that the provision of IUP to this mass organization would be a hunt for economic benefits without having to create an added value or rent-seeking so that mass organizations would sell their rights to other companies.

"This is actually a blunder," added Fahmy.

Fahmy said that the IUP should be handed over to Village-Owned Enterprises (BUMDes) so that it can provide benefits to communities around the IUP area which are usually affected by mining exploitation

"So whether through BUMD or BUMDes is more appropriate and the results are for the affected people," continued Fahmy.

Fahmy reiterated that the decision to hand over IUP to mass organizations was not the right decision because religious organizations did not have capabilities in terms of adequate capabilities and capital.

Instead of being handed over to religious organizations, Fahmy advised the government to provide 2 percent profit from mining products to mass organizations.

"So if you want to help religious organizations, just give 2.5 percent of the funds from certain areas to mass organizations related to the people, not by giving rights because it is not the domain of the religious organizations," he concluded.

Previously, Bahlil said that the reason for the provision of this IUP was because religious organizations had services in releasing the Indonesian people. Therefore, according to Bahlil, mass organizations should be given appreciation for all their contributions to the state. One of them is by permission to work on mines.

"The logic is like this, you guys have a heart, NU Muhammadiyah, church leaders, Hindu temples. When Indonesia was not yet independent, who freed this nation?," he told reporters met at the Office of the Ministry of Investment, Jakarta, written Tuesday, April 30.

According to Bahlil, religious leaders and religious organizations play a major role when the state faces problems, and also before Indonesia achieves independence.

"During the 1948 military aggression, who made the jihad fatwa? Conglomerate? Companies? Those who make religious figures. Why aren't we happy if the state is here to help them? But how come someone is happy if the investors we continue to give," he said.