Summary of "Respons NU dan Muhammadiyah soal Konsesi Tambang"

Overview

President Joko Widodo’s decision to allow religious organizations to manage mining concessions drew mixed reactions from Indonesia’s two largest Islamic organizations: Nahdlatul Ulama (PBNU) and Muhammadiyah.

Key points

PBNU’s response
- Welcomed the president’s move, calling it a bold step and expressing appreciation.
- Quickly set up a company to handle the mining permits and named its general treasurer (transcribed as Gfan Arif Gur) to oversee permit processing.
- Says the permits will be managed by experienced cadres with relevant management and mining experience.
Muhammadiyah’s response
- Has not made a final decision and says there has been no government discussion with the organization about taking on mine management.
- Is still assessing its capacity and the potential risks to the organization and the state, and is not rushing into a decision.
- Viewed the policy as a sign of government attention to religious groups but warned it could create perceptions of political motive or patronage.
- Regional Muhammadiyah leaders said awarding mining permits without an open auction appears to violate Law No. 3 of 2020 (amending Law No. 4 of 2009 on Mineral and Coal Mining) and could increase the risk of corruption.