Jakarta –
President Joko Widodo (Jokowi) asked that licensing in the mining sector no longer be complicated. According to Jokowi, there are a lot of permits that require going back and forth from one place to another.
This was conveyed by Jokowi on the agenda for the 79th Anniversary of Mining and Energy. Bahlil made this statement in front of the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia.
“Regarding regulations, we must also be careful. Everything related to things that take a long time, going round and round from table 1, 2, 3, 4, 5 must start to be simplified,” said Jokowi at an event held at the Kempinski Hotel, Central Jakarta, Thursday (10/10/2024).
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He emphasized to Bahlil that licensing must be cut. Licensing matters must be made as simple as possible
The former Governor of Jakarta said that if licensing runs smoothly, economic development in the energy and mining sectors will run smoothly. The advantage is that people can get jobs and Indonesia can increase oil and gas loading.
“This must start to be made simple, Minister, so that investment comes to our country, job opportunities are opened, then exploration can all take part and finally our oil and gas lifting returns to an increase,” asked Jokowi.
According to him, without simplifying and cutting permits in the oil and gas and mining sectors, Indonesia will find it difficult to compete with other countries. Jokowi emphasized that fast countries will beat slow countries.
“Without simplifying permits, without making the regulations we have simple, it will be very difficult for us to compete, compete with other countries because once again I say, in the future, fast countries will beat slow countries,” stressed Jokowi.
(hal/hns)
Analysis: Jokowi’s Push for Simplified Mining Licensing and the Path to an Industrialized Indonesia
In a recent statement, Indonesian President Joko Widodo (Jokowi) emphasized the need for simplified licensing procedures in the mining sector. This move is part of Jokowi’s broader vision to transform Indonesia into an industrialized nation. In this analysis, we will delve into the implications of Jokowi’s statement and examine the recent developments in Indonesia’s mining sector.
Jokowi’s call for simplified licensing comes as no surprise, given the complexities and inefficiencies that have long plagued Indonesia’s mining industry. As he noted, the current system requires numerous permits and entails a great deal of bureaucratic red tape [[1]]. By streamlining the licensing process, Jokowi aims to attract more investment, boost economic growth, and ultimately drive Indonesia’s transition to an industrialized economy.
One notable example of Jokowi’s efforts to promote industrialization through mining is the recent inauguration of the Smelter Grade Alumina Refinery (SGAR) of PT Borneo Alumina Indonesia [[1]]. This project represents a significant step towards downstreaming bauxite, a crucial process that will help Indonesia to shift from being a mere exporter of raw materials to a producer of higher-value goods.
However, Jokowi’s mining policies have not been without controversy. A recent revision to existing mining rules, signed by Jokowi in May, has sparked debate and criticism. The revision allows religious organizations, including Nahdlatul Ulama (NU), to obtain mining concessions [[2]]. While some view this move as a way to promote economic growth and inclusivity, others have raised concerns about the potential environmental and social impacts of increased mining activities.
Furthermore, the move has created divisions within Indonesia’s largest Islamic organization, Nahdlatul Ulama, with some members questioning the wisdom of awarding mining licenses to religious groups [[3]]. This development highlights the complex and often contentious nature of mining politics in Indonesia.
Jokowi’s push for simplified mining licensing is a key component of his broader vision to drive Indonesia’s industrialization. While efforts to promote downstreaming and increase investment are laudable, they must be balanced against concerns about environmental sustainability and social impact. As Indonesia continues to navigate the complexities of mining politics, it remains to be seen how Jokowi’s policies will ultimately shape the country’s industrial future.
References:
- President Jokowi: Bauxite Downstreaming, Step towards Indonesia as Industrial Country
- Nahdlatul Ulama leaders discuss mining concessions with Jokowi
- Jokowi’s religious mining rule divides Indonesia’s largest faith group
