The Governor Of South Sulawesi Rejects The Extension Of Vale's Contract, Here's The Reason

South Sulawesi Governor Andi Sudirman Sulaiman. (Photo: Doc. Antara)

JAKARTA - Governor of South Sulawesi (Sulsel) Andi Sudirman Sulaiman rejected the extension of PT Vale Indonesia Tbk's (INCO) Work Contract to become a Special Mining Business Permit (IUPK).

The reason is, throughout the history of PT Vale being founded, there has never been a local resident from South Sulawesi who has been at the top level of management or the directors' system.

"Never mind being part of the joint venture, our regional companies (Perusda) are also not allowed to sell diesel for PT Vale mining activities. As strong as they are," said Andi in a Hearing Meeting with Commission VII DPR RI, Thursday, September 8.

For this reason, he ensured that if there was a concession handed over to the province, he would not participate in it.

Andi also regretted the small contribution of PT Vale Indonesia to the South Sulawesi region.

"We see that the contribution is Rp. 200 billion a year. This is too small! Every month trillion comes to us with so many areas of management," he said.

On the basis of all of this, he firmly rejected the extension of the KK.

"One word from us, there is no extension for them!" said Andi.

He admitted that he had asked President Joko Widodo to become the owner of the WIPK permit for the exploration of the Vale Indonesia mine by submitting a letter.

With this submission, he hopes that the regional and provincial governments can take control of their existing natural wealth.

Andi also mentioned several considerations for making BUMD a mining manager, including environmental issues that are often a separate burden for local governments who cannot directly control natural wealth systems by mining authorities.

"We have also been in the spotlight regarding several villages that are areas of extreme poverty, including in the Luwu Raya area before the construction of this mining area," Andi added.

Meanwhile, currently, the South Sulawesi Province BUMD is still waiting for the submission of the WIPK bidding requirements as a priority by the Director General of Mineral and Coal (Dirjen Minerba) on behalf of the Central Government.