Strengthening the Role of the State in the Export of Natural Resources and Energy is Believed to Accelerate People's Prosperity

JAKARTA - The BANGSA MUDA coalition, a network of student organizations under the auspices of the Red and White Student Movement, held a talk show entitled "Students Speak: Build National Unity, Implement Article 33" at Mattea Social Space, Rawasari, Jakarta.

The forum discussed the importance of enforcing Article 33 of the 1945 Constitution as a foundation for realizing national economic sovereignty in the midst of global challenges, social inequality, and international competition in the control of Indonesia's strategic natural resources.

In the study presented, the BANGSA MUDA Coalition highlighted the still wide economic gap in Indonesia.

Based on data from the Central Statistics Agency (BPS), the distribution of wealth and the possession of productive assets are still not reflective of the constitutional mandate, and this condition is seen from the high inequality in land ownership and the unevenness of development benefits in a number of areas that are rich in natural resources.

The forum also highlighted the conditions of Papua and Maluku which have large mining and fisheries potential, but still face relatively high poverty rates.

According to the BANGSA MUDA Coalition, this condition shows that the national natural wealth has not yet fully provided optimal benefits for people in producing areas.

In the geopolitical aspect, Indonesia is considered to have a strategic position as one of the world's major nickel producers, but the magnitude of this potential is not fully proportional to the economic benefits received by the community because of the still strong dominance of foreign capital and technology in the chain of downstream mineral industries.

The BANGSA MUDA coalition considers that the problem is inseparable from the phenomenon called serakahnomics, which is an economic pattern characterized by the dominance of global capital, domestic oligarchy, and bureaucratic corruption practices that hinder the realization of economic sovereignty as mandated by Article 33 of the 1945 Constitution.

Meanwhile, the Executive Chair of the Young Nation Coalition who is also the General Chair of EN LMND, Muh. Isnain Mukadar emphasized that national unity is the main requirement in building national sovereignty.

"National unity is not just an annual slogan. It is an absolute condition for sovereignty. And the economic sovereignty mandated by Article 33 is the main prerequisite for the real prosperity of the people," he said.

He added that Indonesia needs to ensure that the wealth of natural resources provides the greatest benefit to the community.

"A country that controls more than half of the world's nickel production, but is unable to retain most of the added value from this wealth for its own people, is a country that has not succeeded in establishing its economic sovereignty," said Isnain.

On the same occasion, the former Minister of Finance under President Soeharto, Fuad Bawazier, emphasized that the management of Indonesia's natural resources must return to the mandate of Article 33 of the 1945 Constitution which states that the earth, water, and all natural wealth contained therein must be controlled by the state and used to the greatest extent for the prosperity of the people.

Fuad explained that the principle was applied strongly in the management of the oil and gas sector.

According to him, the government began to strengthen the state's control over the oil and gas sector since 1960 and was then strengthened through policies during the Soeharto presidency through the 1971 Oil and Gas Law.

He explained that the oil and gas sector at that time required large capital and high technology so that the involvement of foreign investors was still needed, however, the state still held the main control and obtained a greater share of benefits.

"So it was given to foreigners, but it was controlled by the state, and if it doesn't work, especially sometimes you take money up to hundreds, billions, it can't work at all to find the oil is difficult, because that's by Pak Harto, it's given to foreigners 35 percent, 65 percent belongs to the state," he said.

"Until now, thank God, there are no problems with oil and gas, from whatever it is, we have started to export until we have higher consumers," he added.

According to him, the success of oil and gas governance should be an example in the management of other strategic commodities such as nickel, coal, gold, platinum, and various other important minerals.

Fuad assessed that all natural resources are in fact the property of the people that must be managed by the state for the common welfare.

Therefore, he criticized the continued possession of natural wealth by certain groups which was considered not in line with the spirit of Article 33 of the 1945 Constitution.

He also welcomed the government's steps under the leadership of President Prabowo Subianto who began to arrange the governance of natural resources and the export of strategic commodities.

According to him, strengthening the role of the state in export management will increase foreign exchange receipts, strengthen foreign exchange reserves, and maintain national economic stability.

"That's why now Mr. Prabowo will be disciplined, disciplined, this is not only oil and gas but others will also be disciplined by the policy of yesterday, May 20, through PT DSI, the state must control exports, because if the state controls exports, all the foreign exchange will enter the country, and our economy will be stable," he said.

For comparison, Fuad cited countries such as Saudi Arabia and Qatar which are able to maintain economic stability because the management of natural resource exports is under the control of the state.

"We have a variety of things, thank God, from the beginning of the various things that can be done. It should be improved not only from oil and gas but to others that are controlled in the country, then later the exchange rate will be a lot, because now it is controlled by many people," he said.

Fuad also highlighted the phenomenon of capital flows abroad which he said caused most of the profits from the management of natural resources not to enter the state treasury.

He assessed that the condition needed to be improved so that the economic benefits could be felt more widely by the community. Therefore, he invited all elements of the nation to support the efforts to arrange the governance of natural resources that the government is carrying out.

According to him, the policy should not be delayed because it concerns national interests and the welfare of the people in the long term.

"That's why we have to focus so that this program can run, because once it runs, God willing, we will always be stable. We will win with exports. This starts with palm oil. And you will know, these policies must be implemented, they must not be delayed anymore because they have cost too many victims. If it is disciplined, God willing, I am sure we will prosper," he explained.

As a follow-up, the BANGSA MUDA Coalition formulated a number of strategic recommendations, including:

1. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 2. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 3. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 4. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 5. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 6. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 7. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 8. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 9. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 10. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 11. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 12. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 13. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 14. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 15. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 16. The establishment of a national mineral diplomacy: utilizing Indonesia's position as the world's largest nickel producer >58% as a strategic bargaining chip in negotiations with the US, EU, China, and Japan, with the main condition that any agreement must meet the standards of Article 33. 17. The establishment of a national