TEMPO.CO, Jakarta - Dear Readers,

Happy Idul Fitri. Please forgive us body and soul. Welcome back to work and your daily routine.

To welcome you back from your holiday travels, we present an exciting story about two members of President Joko Widodo’s cabinet. This time, it is about Investment Minister Bahlil Lahadalia and Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan.

Unlike usual, the two of them reportedly have differing opinions. In a recent cabinet meeting a few weeks ago, Jokowi’s two main ministers clashed over mining, plantation, and agricultural business permits (IUP) for mass organizations.

The government is planning to grant IUPs to mass organizations. Bahlil wants the permits to be given to mass organizations through a revision to Government Regulation No. 96/2021, while Luhut opposes it because it does not align with the Mineral and Coal Mining Law. This law states that IUPs can only be given to business entities. In other words, handing them out to mass organizations is against the law.

This idea of the distribution of IUPs began with a promise from President Joko Widodo promise at the Nahdlatul Ulama congress in December 2021. At that time, he promised to give IUPs to the youth membership of the NU saying this would empower the people and bring about economic equality. As is well known, the NU later became a loyal supporter of Jokowi in his second term. Now, it is time to fulfill that political promise.

Of the many mass organizations, only NU has applied to manage IUPs. Minister Bahlil mentioned a few other organizations, but it is only about five or six organizations. How to select them is still unclear.

Bahlil’s effort, of course, aims to position himself as a loyal assistant to Jokowi. That is why he has been given a powerful task as the Chief of the Land Use and Investment Regulation Task Force. As the Task Force head, he has the authority to revoke unproductive IUPs, reinstate them, and re-auction them.

He has already revoked more than 2,000 IUPs. However, regarding IUPs for mass organizations, the government intends to distribute IUPs that have had their operational areas reduced to become Special IUP Areas. These concessions are generally coal mines that are still rich in natural resource reserves. NU has said that it wants to manage these special areas.

Because it conflicts with the law, Minister Luhut tries to mediate by offering another way: still giving concessions to mass organizations without breaking the law. How?

We discuss Jokowi’s new political maneuvers to repay favors to his supporters in this week’s edition.

Enjoy the magazine.

Bagja Hidayat

Deputy Chief Editor

Returning the Favor with Mining Permits

Luhut Pandjaitan and Bahlil Lahadalia discussed the allocation of mining permits. For the sake of delivering Jokowi’s promise.

The House Investigates Bahlil Lahadalia in Mining Permits Revocation

The role of Bahlil Lahadalia in revoking mining business licenses draws attention of the House of Representatives and civil society groups, amidst concerns of possible licensing corruption.

Bahlil Lahadalia on Mining Concessions for Mass Organizations

Interview with Minister of Investment Bahlil Lahadalia about mining business permits IUP for mass organizations, and the debate with Luhut Pandjaitan.

Economy

Regional Bonds, A New Regional Finance Alternative

The OJK and the Finance Ministry will soon issue a regulation on regional bonds. Some see this as a risky way to increase debt.

Law

Many Islamic Boarding Schools Do Not Have Licences

Islamic boarding schools (pesantren) cannot be closed even if they do not have a license from the government. There is no protection from the Ministry of Religious Affairs if legal problems arise.

You can read more complete repont in Tempo Magazine:

Returning the Favor with Mining Permits

The House Investigates Bahlil Lahadalia in Mining Permits Revocation

Bahlil Lahadalia on Mining Concessions for Mass Organizations

Regional Bonds, A New Regional Finance Alternative

Many Islamic Boarding Schools Do Not Have Licences