Having The Second Largest Coal Reserve In Indonesia, South Sumatra Remains Unable To Reduce Poverty

Coal (photo: dock. intermediate)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) revealed a number of anomalies in the management of natural resources (SDA) that should prosper the community.

"Based on the results of discussions by the Ministry of Energy and Mineral Resources with the National Development Planning Agency (Bappenas), which concluded that there is an anomaly in the management of natural resources in a number of regions of Indonesia that are rich in natural resources, the poverty rate is quite high, one of which is the Province of South Sumatra," said the Expert Staff of the Minister of Energy and Mineral Resources for Strategic Planning, M. Idris. F. Sihlete quoted Monday, July 22.

Sihite revealed that the anomaly that was clearly in front of us, namely, South Sumatra Province, which has the second largest coal reserves in Indonesia, amounted to 9.3 billion tons with 104.68 million tons of coal production in 2023 and resulted in state revenues of Rp9.898 trillion, not being able to reduce the poverty rate in this province.

One of the causes of the anomaly, according to Sihite, is the large number of unlicensed mining in South Sumatra Province which seeks temporary profit regardless of good and responsible mining rules.

"The province of South Sumatra is one of the most PETI locations in Indonesia. PETI is a criminal act of mining a mineral and coal sub-sector with a special offense (lex specialist) outside the Criminal Code which contains criminal sanctions with beb (Article 158 s/d Article 164 of Law No. 3 Th 2020)," said Sihite.

Furthermore, to the prosecutors, Siite hopes that the prosecutors will need to reform their strategy for disclosing the science-based PETI case and 'case the big fish'.

"All mining commodities have DNA-like identity, so they can be identified using a scientific evidence approach, whose basis is measurable in the laboratory. Scientific evidence is indisputable evidence to calculate state losses from illegal mining practices," explained Sihite.

In order to calculate the impact of state losses, Sinate said the Ministry of Energy and Mineral Resources has the ability to disclose raw, measurable, and comprehensive data to prove the real loss to the state is not just an estimate.

Sihete also reminded that the Ministry of Energy and Mineral Resources currently does not have a special unit in charge of law enforcement in the ESDM sector as is the case with the Ministry of Environment and Forestry (KLHK). He emphasized the need to build constructive and sustainable synergy between the APH of the Prosecutor's Office (as Investigators, Public Prosecutors and JPN) with the Ministry of Energy and Mineral Resources apparatus to transform knowledge of technical aspects of mining (minerba and oil and gas) and the principles of good governance in supporting the success of carrying out their respective duties.

"Cooperation between the government, companies, the community, and all stakeholders is needed to create sustainable mining management by applying the principles of good mining practice," concluded Sihite.