Bahlil: Mining Permits Given To Religious Organizations Should Not Be Transferred

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the additional business license (IUP) granted to religious community organizations (ormas) could not be transferred.

"This IUP cannot be transferred, it's very strict, it's not easy. Because this IUP is held by the cooperatives of community organizations and cannot be transferred in any form," he said at a press conference, at the BKPM Office, Jakarta, Friday, June 7.

Furthermore, Bahlil also ensured that the distribution of this IUP would be carried out properly and transparently. In fact, also without any conflict of interest.

"There should be no conflict of interest with the holder of the previous PKP2B permit, so there is no moral hazard here, and transparent," he said.

"In some European countries, they have consequences for church organizations in Europe. Now this is indeed a new thing, and this is a noble thought, and a healthy mind born to the president and discussed with us ministers. So we carry out what we think in the context of equity and priorities," he said.

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

This provision is stated in PP number 25 of 2024 regarding amendments to Government Regulation (PP) Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities which were signed on May 30.

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).

"The IUPK and/or share ownership of religious community organizations in Business Entities as referred to in paragraph (1) cannot be transferred and/or transferred without the Minister's approval," reads Article (3) quoted on Friday, May 31.

Meanwhile, Article 4 states that the share ownership of religious community organizations in business entities must be majority and be controlling.

Then Article 5 states that business entities are prohibited from collaborating with previous PKP2B holders and/or their affiliates.

Then paragraph 6 states that WIUPK's offer as referred to in paragraph (1) applies within a period of 5 (five) years since this Government Regulation applies.

"Further provisions regarding WIUPK's priority offer to Business Entities belonging to religious community organizations as referred to in paragraph (1) are regulated in Presidential Regulation," reads paragraph 7.

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).

"The IUPK and/or share ownership of religious community organizations in Business Entities as referred to in paragraph (1) cannot be transferred and/or transferred without the Minister's approval," reads Article (3) quoted on Friday, May 31.

Meanwhile, Article 4 states that the share ownership of religious community organizations in business entities must be majority and be controlling.

Then Article 5 states that business entities are prohibited from collaborating with previous PKP2B holders and/or their affiliates.

Then paragraph 6 states that WIUPK's offer as referred to in paragraph (1) applies within a period of 5 (five) years since this Government Regulation applies.

"Further provisions regarding WIUPK's priority offer to Business Entities belonging to religious community organizations as referred to in paragraph (1) are regulated in Presidential Regulation," reads paragraph 7.