Jayanty Nada Shofa, Jakarta – The government is defending its decision to allow religious groups to manage mining areas, saying that these organizations are very much capable of doing the job with little to no environmental impact.

President Joko "Jokowi" Widodo not long ago decided to enable religious groups to become mining operators. The policy sparked concerns, many worried whether faith groups could run the mining areas sustainably. Indonesia's largest Islamic organization Nahdlatul Ulama (NU) became the first group to say yes to the mining permits. Other groups initially refused, but the Muslim organization Muhammadiyah recently took the business opportunity.

Investment Minister Bahlil Lahadalia said Monday that he saw nothing wrong with having faith groups getting mining permits.

"People tend to see things in a negative light. Many ask how can [these faith groups] manage the mines without any experience. Now let me ask you this: did actual businessmen already have mines before they started their mining business? And then people say granting the faith groups mining permits can harm the planet. Are you sure about that? Even without these organizations, some mines are already like that," Bahlil said in Jakarta, alluding that some existing practices already had inflicted environmental damage.

"I believe these religious groups can set an example to other investors on how to manage the mines sustainably," Bahlil told reporters.

Bahlil claimed that letting religious groups run mining concessions is part of implementing the 1945 Constitution, which states that Indonesia should make best use out of its natural wealth to prosper the people.

"So why is it so hard for us [to give the mining concessions] to the people? But everyone agrees if we are giving them to conglomerates and foreign investors.... When foreign [investors] take over [the mining concessions], no one bats an eye," Bahlil said.

NU is set to get a coal mine formerly operated by Kaltim Prima Coal (KPC), a subsidiary of the mining giant Bumi Resources which belongs to Indonesian conglomerate Bakrie Group. According to Bahlil, Muhammadiyah will likely earn "the best location" out of the remaining old coal mining contracts that did not previously belong to the KPC. However, the minister refused to say more about Muhammadiyah's future mine permit, saying that he needed to report to Jokowi first before disclosing more details.

Source: https://jakartaglobe.id/business/govt-sees-nothing-wrong-with-letting-religious-groups-manage-mine