Jakarta – This is what happens when a mass organization accepts a coal mining concession. Instead of focusing on social and religious activities for the benefit of its members, senior Nahdlatul Ulama figures are caught in an internal conflict over the management of natural resources.
The feud between the Nahdlatul Ulama Central Board (PBNU) General Chair Yahya Cholil Staquf and Secretary-General Saifullah Yusuf is believed to have been triggered by the question of which tycoon they will partner with. The "official" reason is that Yahya invited pro-Israel academic Peter Berkowitz to the NU National Leadership Academy. There are also indications of irregularities when Yahya was managing the PBNU finances.
These two reasons were the basis for the call for Yahya to resign as general chair made at a daily meeting of the Syuriah – the organization's oversight and decision-making body headed by Rais Am (supreme leader) Miftachul Akhyar. Yahya rejected the ultimatum, claiming that the Syuriah does not have the right to dismiss him – especially without due process.
This disarray all began in 2024, when the Joko Widodo administration granted coal mining concessions to a number of mass organizations. The PBNU received a concession covering 26,000 hectares on East Kalimantan that formerly belonged to Kaltim Prima Coal. The PBNU then established Berkah Usaha Muamalah Nusantara to manage the mining quota.
This company clearly has no experience managing mines – let alone dealing with the negative impacts of extraction. Therefore, they need to look for a corporation with substantial financial assets and experience with this risky business. The PBNU's lack of experience has opened the door to the oligarchs getting back into the mining business.
There are indications that Garibaldi Thohir, alias Boy Thohir, boss of Alamtri Resources – formerly Adaro Energy Indonesia – has connections with the company that put forward a cooperation proposal. Presidential Regulation No. 76/2004 bans former owners from operations on their previous concession areas. This means that a company with links to Boy is allowed to operate in an area previously managed by another company. But the problem is that in its tender, the company, which also has links with the older brother of Youth and Sports Minister Erick Thohir, stated it was not prepared to cover the enormous costs of the infrastructure.
The political winds changed direction. After Prabowo Subianto became president, his younger brother Hashim Djojohadikusumo also submitted a proposal, but unlike his competitors, he said he would cover all the costs.
This is what has divided the NU membership. While waiting for approval from the Palace, Yahya's allies have claimed that some senior figures are hostage to mining loans taken out by Boy. Meanwhile, Yahya's rivals have accused him of being an obstacle, which must be removed.
What is happening within the PBNU resembles the description by Richard Auty, the British economist who popularized the natural resource curse hypothesis. Natural resources, Auty claims, turn a state or institution into a contestant in a rent-seeking contest rather than building sound governance. As well as being an economic commodity, natural resources also trigger conflicts among the elite.
Look at what happened in Sierra Leone. The West African state was afflicted by corruption and a protracted civil war as a result of the diamond curse. Warring factions were able to buy weapons with the proceeds of gem smuggling. The conflict killed 50,000 people, while millions more were forced to flee.
In order to smooth the way for the issuing of a mining permit without a tender process, the government altered the regulations. Initially, mining concessions for mass organizations were regulated by Government Regulation No. 25/2024. A number of institutions and individuals then asked the Constitutional Court for a judicial review on the grounds that the regulation was in breach of the Mineral and Coal Mining Law. Before the Court ruling was issued, the government hastily revised the Mining Law. The law was then used as a ruse to legitimize the granting of concessions – an example of a practice known as state capture.
There is a reciprocal relationship between public and private sides in state capture. As well as the private side capturing the state, the opposite also happens. In the granting of mining concessions, the state tries to control mass organizations.
The granting of mining concessions is an endeavor by the state to stifle criticism by reducing the independence of civil organizations. As a result, they are subdued because they are trapped in the politics of mutual back-scratching.
– Read the complete story in Tempo English Magazine
Source: https://en.tempo.co/read/2070324/the-nu-leaderships-mining-curs