Jakarta – Almost 20 cooperatives have applied to receive mineral and coal mining management permits from the government, Deputy Cooperatives Minister Ferry Juliantono has said.
"The ministry has received applications from nearly 20 cooperatives for permits to mine tin, gold, coal and other minerals," Ferry said on Thursday, as quoted by Antara.
The permit applications came after the House of Representatives passed a revision to the 2009 Mining Law in mid-February. The law's amendment was deemed controversial for including a provision that allows the government to grant mining permits (IUPs) to religious mass organizations, small and medium enterprises (SMEs) and cooperatives.
The deputy minister added that the government would first establish technical regulations on cooperatives-led mining management. He also called for the Energy and Mineral Resources (ESDM) Ministry to introduce policies enabling cooperatives to participate in oil and gas mining.
He cited an example in Muara Enim, South Sumatra, where a cooperative managed oil wells previously managed by state-owned energy holding company Pertamina.
"From the well in Muara Enim, we've been able to produce 15 barrels of oil per day. We are now preparing to open the third well," he said.
Ferry later said granting mining permits to cooperatives and other business entities under the revised Mining Law was in line with President Prabowo Subianto's commitment for Indonesia to achieve energy self-sufficiency.
Som officials previously said the law revision would ensure a fair distribution of mining opportunities and the improvement of governance around the mining sector.
Critics slammed the policy as "pork-barrel politics" that rewarded mass organizations and business entities for their support for the government and silenced potential dissenters in the future.
Environmentalists also warned about the potential damage from granting concessions to organizations with no expertise in the mining industry.