Balikpapan. President Joko "Jokowi" Widodo emphasized that his decision granting mining permits to religious organizations undergoes rigorous selection.

Last month, President Jokowi signed Regulation number 25/2024, permitting religious organizations to manage state-owned mining areas. The regulation grants religious organizations the ability to obtain special licenses for mining concessions.

"The requirements are very strict, whether it's given to cooperatives within religious organizations or perhaps business entities and others. So, it's the business entity that is given, not the organization," explained Jokowi after inspecting the Nusantara State Palace in East Kalimantan on Wednesday.

Executive Director of the Indonesia Mining Association (IMA), Hendra Sinadia, said that religious organizations are entitled to manage mining as long as they have mining permits.

Hendra emphasized that anyone offered a mining permit must strictly adhere to the specified terms and conditions. "Especially good mining practices, environmental management, payments to the state, and others that are strictly regulated," said Hendra Sinadia during a meeting at the Indonesia Stock Exchange (IDX) in South Jakarta, on Tuesday.

Hendra highlighted that mining ventures require competent experts and a high level of commitment due to the industry's stringent requirements, including ensuring miners' safety and maintaining environmental responsibility.

Investment Minister Bahlil Lahadalia said that the government plans to grant a coal mining concession with sizable reserves to the executive board of Indonesia's largest Muslim organization Nahdlatul Ulama (NU).

"We will give a mining concession that holds fairly large coal reserves for Nahdlatul Ulama to manage to optimize the organization," Bahlil recently stated.

According to Article 83A of the regulation, "To enhance the people’s welfare, the special mining business licenses can be prioritized for a business entity owned by a religious organization".

The religious organization must hold a controlling stake in the business entity to be eligible for the license. The license is non-transferable without approval from the Minister of Energy and Mineral Resources. Additionally, the license holder is prohibited from collaborating with the previous license holder of the same mining areas or its affiliates.