The Minerba Bill Is Passed Into Law, Faisal Basri: Where's The Morale?

Illustration. (Photo: Unsplash)

JAKARTA - Indonesia's senior economist, Faisal Basri, assessed that the step by the House of Representatives to pass the Revised Mineral and Coal (Minerba) Law in the midst of the corona virus or COVID-19 pandemic was to save entrepreneurs. This law should not have been passed hastily.

"Troubled people, debauchery elites. In the midst of such conditions, what is saved first is the coal airport with the Minerba Law," he said, in an online discussion with the theme 'COVID-19 and Economic Stimulus', Wednesday, May 13.

According to Faisal, the aim of this hasty move was to save a large-value contract of work whose concession was about to end. He also mentioned a number of names.

"That was what was saved first because there were Luhut, Aburizal Bakrie, Erick Tohir, save it first. They did not have time to wait for the omnibus law anymore. This omnibus was a bit frozen, so this was boldly promulgated (the Minerba Law). I don't know the moral anymore. where is it, "he said.

As is well known, Bill Number 4 of 2009 concerning Mineral and Coal Mining (Minerba) was passed in a plenary session of the DPR, yesterday afternoon. Overall, in this law there are 2 new chapters added so that there are 28 chapters, 83 articles have been changed, 52 new articles, and 18 deleted articles. So that the total number of articles becomes 209 chapters.

Elite Profit Minerba Act

Indonesia Corruption Watch (ICW) researcher Egi Primayogha regrets that the DPR and the government for the discussion and ratification of the Minerba Bill seemed hasty and not transparent.

Egi assessed that the Minerba Law does not side with the environment and only benefits the rich elite. One of the problems of the Minerba Bill is the guarantee of extension for mineral and coal companies with Contract of Work (KK) licenses and Coal Mining Work Agreement (PKP2B).

"Many coal companies with PKP2B licenses are affiliated with elites who have extraordinary wealth," he said, in a written statement.

The extension of the KK and PKP2B licenses has become a prolonged polemic. Egi said license holders were not guaranteed a contract extension under the Minerba Law, and were considered to have narrowed the space for coal businessmen to move. So that a number of efforts were made to obtain certainty for extension, which was reflected in the Job Creation Bill and the Minerba Bill.

"Now through the revision of the Minerba Law they are guaranteed to get a profit by dredging coal mining. It is strong that the revision of the Minerba Law is thick with the interests of the elite rich in coal rulers," he said.

Egi said that the coal industry is controlled by wealthy elites. Large coal companies are owned by individuals who are the richest people in Indonesia, are affiliated with public officials, or are known to be affiliated with companies registered in tax havens. If the Minerba Bill is passed, they will benefit.

Many of the coal businessmen own companies with PKP2B licenses. The extension guarantee will benefit them. In a short time, there were seven first generation PKP2B companies whose licenses were about to expire.

"The companies are PT Arutmin Indonesia, PT Kaltim Prima Coal, PT Kendilo Coal Indonesia, PT Multi Harapan Utama, PT Adaro Indonesia, PT Kideco Jaya Agung, and PT Berau Coal," he said.

The ICW search results, said Egi, show that these companies are affiliated with wealthy elites. A number of names are known as beneficial owners (true beneficiaries / owners), shareholders, managers, or affiliated as business partners / family.

"The state will be disadvantaged, the wealthy elites will benefit. It is proper to suspect that this type of corruption is state capture," he said.