Coal mining exploitation almost completely controls Mulawarman village in Kutai Kartanegara, East Kalimantan, as seen in this photo taken on Tuesday (20/11/2018). Many residents in Mulawarman have left the village and sold their lands to mining companies, because coal mining activities in their village had damaged the environment and sources of clean water, leaving almost no space for farming. They are often disturbed by bomb explosions by miners to flatten hills and land.
SAMARINDA, KOMPAS -- Coal-mining governance in Indonesia is rife with problems, with influential people owning many of the country’s problematic coal mines.
As of September 2018, there are 633 problematic mines across Indonesia that do not fulfill the requirements set out by the Energy and Mineral Resources Ministry. These problematic mines are categorizes as non-clear-and-clear, or non-CnC, mines.
Data from the ministry’s coal and minerals directorate general shows that only 1,756 of the 2,389 mining business permits (IUP) in Indonesia are deemed “clean and clear” or non-problematic.
East Kalimantan has the largest number of IUPs in Indonesia, with 998 licenses. Of this amount, 215 are non-CnC. The ministry data is different from that of the province’s energy and mineral resources agency, which cited 1,404 IUPs province-wide, 429 of which are non-CnC.
However, Kompas’ investigation of several mining sites in Samarinda and Kutai Kartanegara, East Kalimantan, found that even a non-CnC status does not make a mine problem-free.
For instance, a number of CnC mines still leave behind abandoned holes, some of which have claimed lives. Other mining sites were opened at the expense of agricultural lands or too close to residential areas.
A Corruption Eradication Commission (KPK) study finds that the haphazard issuance of mining permits by regents or mayors leads to messy mining governance nationwide. KPK research and development director Wawan Wardiana said that regents and mayors were prone to issuing as many mining licenses as possible for personal gain without minding the environmental impacts, thereby causing problems.
This haphazard issuance of mining permits is reportedly done to cover high political costs.
“They issue licenses haphazardly to recoup their political expenses. Consequently, many IUPs overlap with one another,” Wawan said.
Energy and Mineral Resources Ministry mineral program development director Muhammad Wafid Agung said that proper IUP management at the ministry began in July 2011. At the time, the country had 9,662 coal IUPs, of which 5,884 were declared non-CnC. In 2014, the KPK was involved in coordination and supervision programs. As a result, on Sept. 1, the number of coal IUPs was reduced to 2,389.
“We asked regional government to revoke non-CnC and expired licenses,” Wafid said.
To do this, the ministry sent five letters between Jan. 13, 2017, and April 30 to a number of parties to block non-CnC IUPs.
“If a mining company is non-CnC but still has an active license, we block it, which means that we do not provide it with any services. We sent letters to the Transportation Ministry, the Trade Ministry and the KPK, telling them not to serve non-CnC companies. Automatically, the company will not be able to operate,” said the ministry’s coal business and supervision director Sri Raharjo.
Influential figures
Company deed data at the Law and Human Rights Ministry’s law administration directorate general shows that many influential figures own non-CnC mines, including East Kalimantan Governor Isran Noor who is listed as commissioner and shareholder of PT Kumala Prima Coal. Energy and Mineral Resources Ministry lists the company as non-CnC.
Isran, however, denied ownership of the company.
“I don’t remember it well. It’s just a rumor. It’s impossible for me as a regent or governor to hold shares [in the company],” Isran said.
He said that the non-CnC status should be looked into and have a legal standing.
“CnC is about location. In East Kutai, the CnC status was given when the license is issued. The CnC status was given by the central government and the official [who gave the status] have never been here,” Isran said.
Separately, East Kalimantan energy and mineral resources agency head Wahyu Widhi Heranata said the provincial administration would close all non-CnC mines, in line with the Energy and Mineral Resources Ministry’s order. With regards to the presence of mines remaining in operation, he said that the process would take time.
He said he acknowledged many local officials had IUPs. However, he was committed that firm actions would be launched against those who violate the laws.
Mining Advocacy Network (Jatam) national coordinator Merah Johansyah said the chaotic mining governance in Indonesia should not be simplified into creating CnC status.
“There should be a national coal-mining moratorium due to poor governance,” he said.
In a written statement, Environment and Forestry Ministry spokesperson Djati Witjaksono Hadi said the ministry\'s law enforcement unit had tackled 551 cases of environmental violations involving corporations and individuals in the three years of its existence. (KOMPAS TEAM)
