Jakarta – Indonesia’s National Publish What You Pay (PWYP) Coordinator, Aryanto Nugroho said that Government Regulation (PP) Number 25 of 2024 concerning Amendments to PP Number 96 of 2021 concerning Implementation Mineral and Coal Mining Business Activities, could become threat at a time obstacle in the implementation of energy transition in Indonesia. Statement the be delivered in Media discussion entitled “Government Regulation 25 of 2024: Obstacles for Transition Energy?” which was held on Wednesday (19/06/2024) in Central Jakarta.

Also present as resource person, Member of the National Energy Council (DEN) Dina Nurul Fitria, Secretary General of the Indonesian Mining Experts Association (PERHAPPI) Resvani, representative from #BersihkanIndonesia Coalition, Fajri Fadhilah and Coordinator Pokja 30 East Kalimantan Buyung Marajo.

Aryanto explain a number chapter inhibitor transition energy in these regulations, among others Article 83A is related with enforcement Mining Business License Area offers Special (WIUPK) ex Agreement Work Enterprise Coal Mining (PKP2B) on an ongoing basis priority to Business Entities owned by the religious mass organization. Also, the removal of the word “annual” related with the obligation reporting Plan Work Budget and Costs (RKAB), including Article 22, Article 47, Article 120, Article 162, Article 177, Article 180, and Article 183.

“Already a number of critics for Article 83A due to the contradictory with Article 75 Paragraphs (2) and (3) of the Mining Law Where priority IUPK is granted to National Owned Enterprises (BUMN) and Regional Owned Enterprises (BUMD). Article 74 Paragraph (1) of the Mining Law also states that IUPK must be granted notice interest of local government. In the other hand, the Government is not ready yet for the several risk mitigations, i.e. technical and mechanism WIUPK auctions’ risk, technical mining’s risk, environmental’ risk, potential of horizontal conflict risk, conflict of interests’ risk, corruption risk and others,” he said.

Aryanto said that giving priority WIUPK offer to religious mass organization will trigger increasing uncontrolled coal production and become of the obstacle of energy transition in Indonesia. Spirit exploitation in this PP is contradictory with Indonesia’s current position to achieve the implementation of energy transition. In 3 (three) last years, Government has failed to control Coal production as mandated in Presidential Decree Number 22 of 2017 concerning General National Energy Plan (RUEN), where production Coal production is limited maximum of 400 million tonnes starting in 2019.

In fact, In 2024, the Ministry of Energy and Mineral Resources (ESDM) has approved the RKAB for 2024-2026 from 587 applications, with amount tonnage approved coal production reaching 922.14 million tons in 2024; 917.16 million tons in 2025 and 902.97 million tons in 2026. These figures have not yet been including amount potency production coal mine from the current IUP with the exploration status and business entities owned by religious mass organization which is the implementation this problematic regulation.

In the other side, the regulation removes the word “annual” related to the obligation RKAB reporting includes Article 22, Article 47, Article 120, Article 162, Article 177, Article 180, and Article 183 PP 25/2024.
RKAB is an important document as basis for monitoring and evaluation activity business mining in each year. With the elimination of the “annual” of RKAB, then could give a serious implication towards governance mining in Indonesia.

Uncontrolled coal exploitation become a threat for energy transition. The Presidential Decree (RUEN) gave limits (coal production) to 400 million tons and now already 900 million tons, that become an obstacle for the energy transition. If implemented could trigger coal production up to 1 (one) billion tons per year. Not to mention, with the discussion and approval of the RKAB which is not transparent and there is a risk of corruption.

“Supposedly, the government is doing a moratorium on mining permits. Not giving concessions to religious mass organizations. Because today’s urgency is a moratorium on mining business licenses,” Aryanto’s firm.

Meanwhile, Dina Nurul Fitria, Member of DEN said that it must be admitted that coal still has an important role in the context of energy supply in Indonesia, for now and in the future, although there must be serious efforts to reduce it. That, in the implementation of the national energy policy, it is still not fully implemented properly, of course it is a concern for all DEN stakeholders to improve.

Currently, DEN is completing the Government Regulation Draft (RPP) related to the National Energy Policy (KEN) which is expected to be a guide for the implementation of the energy transition in the future.
Hopefully this RPP can be discussed with the DPR in the near future” explained Dina.

Resvani emphasized the importance of improving the governance of the mining sector to support the implementation of the energy transition. According to him, the uncontrolled coal production, social and environmental problems, illegal mining, can actually be completed and mitigated in the future, even without having to do a moratorium on a new coal mine permit.

“The key is Improvement of Mining Governance! There are many corridors from the constitutional side to the technical side. Do not let the corridor be hit” said Resvani.

Fajri Fadhilah, who is also a researcher of ICEL (Indonesian Center for Environmental Law) mentioned the fundamental problem in the preparation of PP 25 of 2024, namely the absence of transparency and public participation.

“This seems to have become a habit in the era of President Joko Widodo, many regulations have been made with minimal transparency of public participation, including this PP 25 of 2024.”

Fajri also reminded the Government’s serious commitment in implementing the energy transition in Indonesia. “The Government’s commitment and seriousness are actually questioned by the existence of PP 25 of 2024? The impact of climate change is so real right now, it’s time for us to switch from coal instead of being exploited continuously using the old paradigm, just only for state revenue source!”

Buyung Marajo, said that the granting of mining permits to religious mass organizations has the potential to cause community conflicts in mining circles, especially in surrounding areas where in fact there are tribal organizations. The government should be careful of this policy, because it can cause great losses in the future and not provide justice across generations, social conflicts are also unforgivable, especially between people.

Based on notes from Pokja 30 Kaltim, a number of PKP2B whose area is shrinked and will be distributed to business entities owned by religious organizations, are also inseparable from problems in the field. For example, PT. Kaltim Prima Coal (PT. KPC), allegedly committed violence and human rights violations against Dayak Basap Keraitan residents in Bengalon, who were forced to move from their village by bullying. The death of a child in a mining hole owned by PT Multi Harapan Utama (MHU) in 2015. Tenggarong District Court, East Kalimantan, on December 4, 2017, sentenced PT. Indominco Mandiri, fined Rp2 billion for being found guilty of dumping waste without permission.

Buyung again and again highlighted the lack of community participation space for this PP discussion. “Participation is not opened, while in the area it feels the impact. The mining circle community is of course the direct impact recipient of this extractive activity; besides they have never been involved in decision making of course they become a new vulnerable group that was created deliberately after this industry left its working area,” said Buyung.

Contact Person :

Aryanto Nugroho, National Coordinator of PWYP Indonesia

Buyung Marajo, Coordinator of POKJA 30 East Kalimantan