Controversy on Granting Mining Permits to Mass Organizations: A Way Forward or Regulatory Blunder?

The controversy regarding the granting of mining permits to community organizations (ormas) by the Minister of Investment/Head of the Investment Coordinating Board, Bahlil Lahadalia, has given rise to significant polemics. This proposal is based on the contribution that mass organizations consider important in the history of liberating Indonesia. However, many question the true benefits of this step as well as the potential risks that may arise.

Bahlil claims that mass organizations have a crucial role in the struggle for independence, so granting mining permits to them is considered the right step. However, this claim is still vague without adequate explanation. Even though some mass organizations may have been involved in the independence struggle, linking this to the granting of mining permits feels odd.

As published in VOI, a number of observers even called this step a blunder. They doubt the ability of mass organizations to manage mining business permits (IUP) efficiently and responsibly. Improper IUP management can have a negative impact on the environment, society and the national economy.

Several parties emphasized that the management of IUPs should still be carried out by Regional Owned Enterprises (BUMD) because they have a more established structure and capabilities. BUMD has more adequate experience and resources in managing business, including mining.

However, not everyone is against this idea. For example, the Indonesian Energy, Mineral and Coal Suppliers Association (Aspebindo), as stated by its general chairman, Anggawira, supports Bahlil's steps in granting IUPs to mass organizations. However, this support feels more like an effort to expand market share than concern for community welfare or environmental sustainability.

The diverse views on granting mining permits to mass organizations reflect the complexity of this issue. Some consider it a step forward to provide opportunities for various parties to contribute to development. However, many are worried about the potential negative impacts, such as misuse of natural resources, environmental damage and social conflict.

The risks that might occur if mass organizations were given responsibility for managing mining IUPs were also highlighted. Without a strong and transparent oversight system, there is a risk of abuse of authority and lack of accountability.

In the regulatory context, granting mining permits to mass organizations raises questions regarding the conditions that must be met. The Minister of Investment must ensure that the mass organization that obtains the permit has the capabilities, compliance with regulations, and commitment to sustainability principles.

The Minister of Investment's plan to grant mining permits to mass organizations raises significant pros and cons. It is important for the government to carefully consider all risks and potential consequences before making decisions that could have long-term impacts on the nation and state.

With all the potential revealed, it can be considered whether appreciation for the role of mass organizations in independence can be given in other forms without involving mining permits.