Morowali Mining Permit Dispute Considered to Disturb Investment Climate, PKH Task Force Asked to Audit PT BDW

JAKARTA - The dispute over mining permits in Morowali Regency has resurfaced and is considered potentially disruptive to business certainty in the mining sector.

The Forest Area Regulation Task Force (Satgas PKH) is asked to conduct an investigative audit on the validity of the PT BDW mining permit which is suspected of using invalid documents.

The legal team of PT ABM said PT BDW allegedly used a letter in the name of the Directorate General of Mineral and Coal of the Ministry of Energy and Mineral Resources as the basis for issuing mining business permits (IUP).

The allegation triggered overlapping mining areas in Morowali and created legal uncertainty for business actors.

"We ask the PKH Task Force to conduct an investigative audit on the validity of the PT BDW permit because it has a direct impact on certainty of effort and mineral resource governance," said PT ABM Ratho Priyasa's lawyer through a written statement received by VOI, Thursday, December 18.

The letter in question is the letter from the Director of Mineral Enterprise Development of the Ministry of Energy and Mineral Resources, Number 1489/30/DBM/2013 concerning the adjustment of the production operation IUP.

The letter is suspected to be the basis for the local government to issue a new IUP for PT BDW on the territory that previously had a valid permit.

According to Ratho, the alleged use of false letters has been confirmed through a number of official letters from the ministry, decisions on the arrangement and revocation of permits by the local government, and decisions of the State Administrative Court. This condition is considered to reflect the weakness of the synchronization of permits and supervision of the mining sector.

In addition to the permit audit, PT ABM also asked the PKH Task Force to coordinate across ministries and supervise law enforcement at the central level. This step is considered important to prevent the occupation of forest areas based on problematic permits that have the potential to harm the country.

Another lawyer for PT ABM, Bahrain, assessed that the termination of the investigation (SP3) of the alleged forgery of a letter by the Central Sulawesi Police risked creating a negative precedent for the investment climate.

"This decision can weaken forest area discipline and create legal uncertainty for investors who obey the rules," he said.

He emphasized that legal uncertainty in mining permit disputes not only harms legitimate permit holders, but also has the potential to reduce investor confidence in the governance of the natural resources sector in Indonesia.

Responding to the report, the PKH Task Force Staff, Haryansyah, said that his party had received the report and would study all the documents submitted.

"The PKH Task Force has received reports and will follow up on them according to their authority," he said.

Previously, PT ABM also reported the termination of the investigation of a similar case to the National Police Reform Acceleration Commission.

This step was taken as part of efforts to seek legal certainty to maintain investment stability and the sustainability of mining operations in Morowali.