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Mining & Minerals

Bahlil Lahadalia : Supporting Faith-Based Groups in the Mining Sector is Indonesia’s Strategy for Equitable Partnerships

Bahlil Lahadalia, the Investment Minister and Head of the Investment Coordinating Board (BKPM), has made an announcement regarding the government’s plan to guide religious organizations in securing reliable partners for coal mine management.

In Jakarta, on Friday, June 7, Bahlil shared that this move is part of the government’s oversight following the issuance of special mining business licenses (IUPK) to various religious community groups. Bahlil explained, “Once they start seeking collaborators, we’ll be there to support them through the negotiation process to ensure they’re not taken advantage of.”

The government has laid out two possible routes for managing these mining operations. The first option allows religious groups to handle operations on their own, provided they have the capability. Alternatively, if they lack the necessary resources or expertise, the government will assist in finding suitable partners.

Bahlil emphasized fairness in these partnerships, suggesting that, “The holder of the IUP should secure a substantial profit while ensuring that those carrying out the actual mining work are compensated at market rates. It’s about establishing equity.”

Furthermore, Bahlil added a note of caution regarding the transferability of these mining permits. He stated that the licenses granted to religious community organizations are strictly non-transferable. “These IUPs, held by community group cooperatives, are strictly regulated and cannot be shifted in any manner,” he affirmed, highlighting the government’s commitment to a regulated and equitable approach in the involvement of religious groups in the mining sector.