Jakarta. Islamic organization Muhammadiyah is expected to receive management rights over former coal mining concessions previously held by Adaro Energy or Arutmin Indonesia, as announced by newly-appointed Energy and Mineral Resources Minister Bahlil Lahadalia after a meeting with Commission VII of the Indonesian House of Representatives (DPR RI) in Jakarta on Monday.

"We are likely to hand over the former Adaro or Arutmin sites," Bahlil said, noting that the decision is still being processed and further developments will be communicated in due course. However, he did not provide specific details on the land size or remaining reserves that Muhammadiyah will manage.

The government has prepared six former coal mining areas for management by religious organizations, including sites previously managed by Arutmin Indonesia, Kendilo Coal Indonesia, Kaltim Prima Coal, Adaro Energy, Multi Harapan Utama, and Kideco Jaya Agung.

Earlier, Nahdlatul Ulama (PBNU), the country’s largest Islamic organization, was granted a 26,000-hectare mining concession in East Kalimantan, formerly managed by Kaltim Prima Coal (KPC), a subsidiary of the Bakrie Group. PBNU Chairman Yahya Cholil Staquf, known as Gus Yahya, announced this after meeting with President Joko Widodo on Aug. 22. The management of the mining area can only begin after obtaining a Special Mining Business License (IUPK) from the Ministry of Energy and Mineral Resources.

"The production has only partially been explored, so we don’t yet know the full extent of the reserves. We've begun production and further exploration," Yahya said.

The government's authorization for religious organizations like Muhammadiyah and NU to manage mining concessions marks a significant step in their involvement in the mining sector. Vice President Ma’ruf Amin expressed no objections to granting mining licenses to these groups, emphasizing the importance of adhering to environmental regulations.

"What’s important is that they protect the environment when managing these mining operations," Vice President Ma’ruf Amin stated earlier this month. He added that criticisms of NU and Muhammadiyah's involvement in mining are understandable if their operations are not properly managed.

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