TEMPO.CO, Jakarta - This time it is Investment Minister Bahlil Lahadalia. With full authority from President Jokowi, Bahlil has the power to revoke unproductive mining business permits. The aim is to facilitate investment. However, as usual, the loopholes in rules and authority are used for other purposes that involve conflicts of interest.

There are more than 2,000 mining permits revoked by Investment Minister Bahlil Lahadalia since he became the Chairman of the Land and Investment Regulation Task Force. This mandate is an order in Presidential Regulation No. 70/2023 concerning Land Allocation for Investment Regulation. However, in the Mineral and Coal Mining Law, the authority to revoke mining business permits lies with the Ministry of Energy and Mineral Resources.

The problem is that this authority is not being used fairly or justly. Tempo discovered that one nickel mining concession that is not productive and not in operation was not included on the list of revoked permits. It turns out that this company is owned by none other than Investment Minister Bahlil Lahadalia himself.

Revoked permits can be reinstated if the owners are able to clarify why they have not started operations. But because the criteria for revocation are not clear, this clarification is a loophole allowing for further machinations. Entrepreneurs who Tempo spoke with said that they were asked to pay money for the permits to be restored.

If there is no clarification, the revocation becomes permanent. And here the third loophole arises: renewed permits are awarded to colleagues or businessmen known to be close to those in power. A number of sources claim that the tariff for restoration of permits was tens of billions of rupiah.

The poor management of mining opens the way for corruption and conflicts of interest. After illegal mining involving those close to the center of power, now there are manipulations of permits in the name of easing the way for investment. How can this be prevented? Read our cover story in this week’s edition.

Bagja Hidayat

Deputy Chief Editor

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You can read more complete report on Tempo Magazine:

Minister Bahlil’s Hands on Mining License Revocation Chaos

Bahlil Lahadalia’s High Ambition

After Minister Bahlil Canceled Thousands of Mining Licences

Illegal Levies in the Soaring Price of Rice

The Government has Difficulty Gaining Access to Religious Educational Institutions