BPKP Saves IDR 31 Trillion Of State Money From Improved Mining Governance

Rupiah illustration (Photo: dock. Antara)

JAKARTA - The Financial and Development Supervisory Agency (BPKP) has identified various critical points that must be addressed regarding the governance of the mining industry throughout last year. Where BPKP managed to save state money worth Rp31 trillion.

The figure of IDR 31 trillion is the state's right which is threatened with being lost due to weak governance in the mining industry in several commodities. One of them is nickel.

BPKP Deputy for Investigation Agustina Arumsari explained that the figure of IDR 31 trillion was cumulative since the mine started operating. However, it was only audited by BPKP last year.

"It's cumulative throughout managing permits from years to years, but the audit is in 2023," he said after a press conference at the BPKP Office, Jakarta, written Friday, February 2.

Sari said the investigation carried out by BPKP was carried out in several strategic locations. Starting from lead in the Bangka Belitung area, to nickel in Southeast Sulawesi.

"Only certain commodities. I don't know the name of the place, but the commodities are nickel and tin," he said.

Furthermore, Sari said that from the results of the investigation, BPKP managed to obtain several findings. One of them is the permit process which is not well managed by the relevant regional government (Pemda).

Sari said mining companies must allocate reclamation funds in the licensing process. He said, this process has not been managed properly by the regional government which issued permits. The reclamation should be carried out in stages.

If the company has pocketed a new Mining Business Permit (IUP), continued Sari, then the old place must be reclamationd. This is a requirement to be allowed to move locations.

"But what happened is not the case, just all of them are all babat. Then, the local government that issued the permit also has no control whether it has been reclamation or not," he said.

Unfortunately, said Sari, even when the reclamation has been carried out, the local government does not control how the reclamation funds are distributed. He also said that another problem that BPKP found was overlapping licensing.

For example, continued Sari, there is an IUP that enters forest areas. In fact, he said, the area should be used as land for conservation.

"Regarding overlapping permits, some entered forest areas and we found them to be like that. This is actually not allowed. Indeed, this is homework for governance improvement," he said.