In Jakarta, the Environment and Forestry Minister, Siti Nurbaya, clarified that the licensing process for mining management to religious community organizations (ormas) is carried out in a professional manner. This is done through each organization’s industry arm that submits the applications. She highlighted that the new regulation, Government Regulation (PP) Number 25 of 2024, introduces innovations to improve upon the previous regulation, Government Regulation Number 96 of 2021, regarding the Implementation of Mineral and Coal Mining Business Meetings. The aim is to streamline the often cumbersome proposal submission process that religious organizations had to go through daily.
Siti Nurbaya explained to reporters at the Presidential Palace that the consideration for granting mining licenses to religious organizations is their capability to manage mining operations professionally through their business wings. “These organizations have business arms, so the licensing is really about allowing the business side to operate professionally,” she remarked.
Moreover, she confirmed that the treatment given to religious organizations involved in mining would be consistent. Previously, the government had opened up opportunities for these organizations to manage mines by granting them access to Special Mining Business Licenses (IUPK). This was established under Government Regulation (PP) Number 25 of 2024, which was signed into law by President Joko Widodo (Jokowi) on May 30, 2024. This regulation introduced a new clause that allows religious community organizations to be prioritized in mining area offerings that were previously assigned to Coal Mining Work Agreement (PKP2B) holders.
Details of the regulation stipulate that mining areas designated as Special Mining Business Areas (WIUPK) cannot be transferred or reassigned without the minister’s approval. Additionally, ownership by religious organizations in a Business Entity must be majority and controlling.
The regulation also restricts these Business Entities from operating similarly to previous PKP2B holders or their affiliates. It mentions that the offer for WIUPK will be in effect for five years from when the regulation is activated, with further details regarding these priority offerings to be managed under a Presidential Regulation.
By streamlining the proposal process and providing special access to mining licenses, the government aims to improve community welfare through the professional business operations of religious community organizations in the mining sector.
