, JAKARTA – The Financial Services Authority (OJK) was asked to clarify the banking sector which provides loan facilities to companies that are suspected of burning forests and land in Sumatra and Kalimantan so that it has an impact on the community.

This was raised in the One Year discussion of the Jokowi-JK Cabinet’s Work Evaluation in the Natural Resources Sector in Jakarta. Norman Jiwon, Director of Transformasi for Justice (TUK) Indonesia, said that the OJK can ask questions related to the banks under it regarding their clients who were involved in forest burning.

“OJK can clarify banking matters, is it true. OJK can promote environmental and social protection, ”said Norman in the discussion, Thursday (29/10/2015).

He said that the banking sector is important because it is this sector that provides funds for companies to expand. This, continued Norman, is also related to OJK’s efforts in encouraging Sustainable Financing in the banking sector.

Research by Profundo and TUK Indonesia earlier this year found that at least 20 banks consisting of foreign banks and domestic banks were involved in financing a large palm oil business group. All of these banks provide their financing to companies that control half of Indonesia’s palm oil plantations, out of a total of around 10 million hectares. Oil palm and paper companies are suspected of being involved in forest burning.

In addition, Norman said banks can also impose sanctions on their clients by reassessing investment facilities and loans given to companies involved in forest burning. After being proven in court, he said, the bank could also revoke all its facilities to the corporation.

“TUK Indonesia urges banks to revoke all loan contracts and other facilities to companies proven in cases of forest and land burning,” he said.



Meanwhile, the Coordinator of Publish What You Pay (PWYP) Indonesia Maryati Abdullah revealed that land conflicts in the mining sector were a red record for the Jokowi-Jusuf Kalla administration. He said that land conflicts have actually increased in areas close to mining activities.

According to him, the problem of overlapping land still occurs in the absence of an indicative map of the government. In addition, the problem of eradicating corruption in the mining sector has not been maximal.

“The eradication of corruption in the mining sector is still minimal,” said Maryati during the discussion.

The Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources noted that there are still many Mining Business Permits (IUP) that do not have CnC status until now, which is around 4,563 permits. The Corruption Eradication Commission (KPK) itself previously asked the Ministry of Energy and Mineral Resources to immediately revoke all these licenses.

Even so, Maryati revealed, her party still has not found a strong will by the Ministry of Energy and Mineral Resources to revoke the problematic permit. “We do not see a strong political will to take action against non-CNC IUPs,” he said.