Jokowi Signs Presidential Decree On Mining Permits For Religious Ormas

President Jokowi (ANTARA)

JAKARTA - President Joko Widodo (Jokowi) issued a Presidential Regulation (Perpres) that allows the distribution of mining business licenses (IUP) that have been revoked to religious community organizations (ormas), including Regional Owned Enterprises, Village-Owned Enterprises, and cooperatives.

This provision is contained in Presidential Decree Number 76 of 2024 concerning Land Allocation for Investment Arrangement signed by President Jokowi in Jakarta, July 22, 2024.

Reporting from the Legal Documentation and Information Network (JDIH) of the Ministry of State Secretariat (Kemensetneg) in Jakarta, Tuesday, the provisions for the distribution of IUP to community groups are listed in Article 5A paragraph (1).

"In order to improve community welfare, the Special Mining Business Permit Area (WIUPK) from the former Coal Mining Concession Work Agreement (PKP2B) area can be made a priority offer to business entities owned by religious community organizations," said the article.

The social organization in question must meet the criteria as well as business licenses and have organs that carry out economic activities and aim at empowering the members' economy and community welfare.

This article also requires that WIUPK offers apply within five years from Government Regulation Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities apply.

The Presidential Regulation delegates the authority to determine, offer, and grant WIUPK for community organization business entities to the Minister of Investment as the head of the task force (Satgas).

After the mining management permit is issued, the community organization must submit an IUPK application through the One Single Submission (OSS) system.

Previously it was reported, Investment Minister Bahlil Lahadalia said that Presidential Decree 70 aims to realize the arrangement of use and use of land for equal distribution of investment.

In addition, said Bahlil, the Presidential Regulation also regulates the arrangement of business licensing for mining, plantations, and forest utilization for Village-Owned Enterprises, Regional Owned Enterprises, business entities owned by community organizations, cooperatives, and business entities owned by MSMEs.

"The distribution of large-scale IUPs will be carried out through a tender process as regulated in the law. But technically, it is in the Ministry of Energy and Mineral Resources," he said.