Jakarta – Publish What You Pay (PWYP) Indonesia, a civil society coalition consisting of 29 civil society organizations at the national and regional levels, urged President Jokowi to revoke Government Regulation (PP) Number 25 of 2024 concerning Amendments to PP Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities. This regulation contains articles related to the implementation of the offer of Special Mining Business License Areas (WIUPK) ex Coal Mining Concession Work Agreement (PKP2B) in priority to Business Entities owned by religious Mass Organizations (Article 83A) and the Government can provide an extension for Special Mining Business License (IUPK) Production Operations as a continuation of Contract / Agreement operations during the availability of reserves and evaluated every 1O years. (Article 195B Paragraph (2)).

Aryanto Nugroho, PWYP Indonesia’s National Coordinator, urged President Jokowi to revoke PP No. 25 of 2024 because its articles contradict with Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining (Minerba Law).

Article 83A of PP Number 25 of 2024 contradicts with the Article 75 Paragraphs (2) and (3) of the Minerba Law, which states that priority for granting IUPK is given to National-Owned Enterprises (BUMN) and Regional-Owned Enterprises (BUMD). Article 74 Paragraph (1) of the Minerba Law also states that granting IUPK must consider regional interests.

“There is not a single article in the Minerba Law that mandates the Government to prioritize granting IUPK to Mass Organizations. This is a clear violation of the Minerba Law!” said Aryanto.

Article 195B Paragraph (2) of PP Number 25 of 2024 contradicts Article 169A of the Minerba Law, where Contracts of Work (KK) and Coal Mining Concession Work Agreement (PKP2B) are guaranteed an extension to IUPK as a Continuation of Contract/Agreement Operations after fulfilling the requirements, provided that:

  • Contracts/agreements that have not obtained an extension are guaranteed to be granted 2 (two) extensions in the form of IUPK as a Continuation of Contract Operations/Agreement each for a maximum period of 10 (ten) years as a continuation of operations after the expiration of KK or PKP2B
  • Contracts/agreements that have obtained the first extension are guaranteed to be granted a second extension in the form of IUPK as a Continuation of Contract Operations/Agreement for a maximum period of 10 (ten) years as a continuation of operations after the expiry of the first extension of the KK or PKP2B.

“The extension to IUPK should not be haphazard and irresponsible by providing as long as reserves are available, which means it can operate until the reserves run out! Do not use the jargon of nationalism over Indonesia’s share ownership in PT Freeport Indonesia to justify violations of the Minerba Law,” said Aryanto.

WIUPK ex PKP2B offer prioritized by Religious Mass Organization-Owned Enterprises

Aryanto reminded the Minister who proposed Article 83A in Government Regulation Number 25 of 2024 to relearn the philosophy of mineral and coal mining management in Indonesia, starting from Article 33 Paragraph 3 of the 1945 Constitution, the history of the enactment of Government Regulation in place of Law (Perpu) Number 37 of 1960 concerning Mining; Law Number 11 of 1967 concerning Basic Mining Provisions, to the current Minerba Law.

Why does the Minerba Law give IUPK priority to BUMN, BUMD, and Private through a WIUPK auction mechanism in stages and not to Religious Organizations? Because this is a form of fulfillment of Article 33 Paragraph 3 of the 1945 Constitution.

We express our concern that the Minister proposing Article 83A in PP Number 25 of 2024 does not understand this context and is only trying to carry out President Jokowi’s discourse during the President’s remarks at the Inauguration of the Opening of the 34th Nahdlatul Ulama (NU) Muktamar at the end of December 2021. Ministers who assist the President should be able to advise the President instead of plunging the President into signing PP’s violating the law.

Aryanto again reminded there are too many risks that the Government needs to be prepared to implement in this article, ranging from technical risks and WIUPK auction mechanisms, technical mining risks, environmental risks, risks of potential horizontal conflicts, conflict of interest risks, and corruption risks.

“This is not a matter of whether Religious Mass Organizations (and other mass organizations) do not have the capacity and should not have business charities. Because, in practice, many CSOs have business charities and do well. The problem is the violation of the MInerba Law and its Priority Bidding mechanism. We are worried that religious organizations are “trapped” by this problematic rule,” said Aryanto.

Another concern is that “This will set a precedent for the government to divide projects (on a priority basis) to CSOs in other sectors, such as infrastructure, even though it violates the rules of the law,” explained Aryanto.

“Acute and Recurring” Problems

PWYP Indonesia also highlighted the non-transparent and non-participatory discussion of the revision of PP Number 96 of 2021. “This is an old, recurring, and acute problem during President Jokowi’s administration,” explained Aryanto.

The issuance of PP Number 25 of 2024 coincides with the issuance of PP Number 21 of 2024 concerning Amendments to Government Regulation Number 25 of 2020 concerning the Implementation of Public Housing Savings, which also received a lot of public rejection as if the Government has never wanted to learn and improve the process of drafting regulations and policies in Indonesia.

It takes President Jokowi’s expansiveness at the end of his term to respond to public interests by daring to revoke the problematic PP.

Aryanto also urged Commission 7 of the House of Representatives (DPR) to pressure President Jokowi to cancel the PP. “The DPR has the authority, the right of interpellation, and the right of inquiry. If it can unravel this chaos, why not use it?”

Mining Governance Improvement Focus

PWYP Indonesia said that the revocation of 1,749 mineral mining licenses and 302 coal mining licenses, as well as the shrinking of PKP2B land extended to IUPK, is precisely the momentum to focus on improving governance and the right time to carry out a moratorium on licenses, especially the coal sector.

Buyung Marajo, Coordinator of Pokja 30 East Kalimantan, a member of the PWYP Indonesia coalition, said that based on JATAM records using satellite image data, 3,033 ex-mining pits, including coal mines, spread throughout Indonesia. Around 1,735 coal mining pits are located in East Kalimantan. The pits are more like lakes, ranging in size from hundreds of square meters to tens of hectares. However, according to data from the East Kalimantan ESDM Office, as of 2018, there are 539 ex-mining pits throughout East Kalimantan. Most pits are in Kutai Kartanegara Regency (264) and Samarinda City (130). JATAM East Kalimantan also noted that in the span of seven years, 2011-2024, 47 lives have been lost due to drowning in former coal mining pits that were not reclaimed.

“We all know that many former PKP2B areas are in the East Kalimantan Province. It is better to solve the problems of poor mining governance first instead of offering WIUPK to religious organizations,” said Buyung.

Buyung reminds, “The offer of WIUPK ex PKP2B in priority to religious mass organizations can also trigger potential conflicts with mining communities, Indigenous peoples, and tribal organizations in the regions. This must be the Government’s concern, not just sharing concessions!”

Time for a Moratorium on Coal Mining Licenses

In 2024, the Ministry of Energy and Mineral Resources approved the total tonnage of domestic coal production this year to reach 922.14 million tons. This also violates the provisions of Presidential Regulation No. 22 of 2027 on the National Energy General Plan (RUEN), which states that Indonesia’s coal production must be limited to 400 million tons since 2009.

It is more than 2 (two) times the provision RUEN gave as a reference for national energy policy. “What is needed now is a Moratorium on coal IUP/K! Instead of giving priority to WIUPK offers to religious organizations. We are worried that an explosion of coal production will threaten the successful implementation of the energy transition in Indonesia.” Aryanto explained.

Contact Person:

  • Aryanto Nugroho, National Coordinator of PWYP Indonesia – aryanto@pwypindonesia.org
  • Buyung Marajo, POKJA 30 Coordinator East Kalimantan – buyung@tenggarong.com