Regarding Mining Process Organizations, Bahlil: Do Companies Immediately Have Experience?

JAKARTA - Investment Minister or Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia opened his voice regarding the doubts of several parties regarding the ability of community organizations (ormas) to manage mines.

Bahlil said that mining entrepreneurs also initially did not have experience in the mining sector.

"Look, if you want to talk about experience, does the company that started mining immediately have mining experience? It's a process," Bahlil told the media crew at the Ministry of Energy and Mineral Resources Building, Thursday, June 6.

According to Bahlil, as long as religious organizations that will receive IUP meet the qualifications and requirements set by the government, these mass organizations can carry out mining activities.

"So if the way people think in mines directly means that other entrepreneurs are not allowed to enter the mining world, only mining people? As long as they comply with the regulations, there are qualifications in mining, we must give opportunities," said Bahlil.

On the same occasion, Bahlil emphasized that the IUP would later be given to business entities owned by mass organizations and not directly to the organization concerned.

"We give it to mass organizations not to their organizations but to business entities owned by the mass organizations. The details will be in the press conference tomorrow," said Bahlil.

Just so you know, previously President Joko Widodo officially signed a Government Regulation that allows religious community organizations (ormas) to manage the Special Mining Business Permit Area (WIUPK).

The rules related to the management of WIUPK by mass organizations are listed in Article 83A which states, (1) in order to improve community welfare, WIUPK can be made a priority offer to Business Entities owned by religious community organizations.

The WIUPK as referred to in paragraph (1) is an area of the former Coal Mining Concession Work Agreement (PKP2B).