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View all search resultsCourt revokes direct appointment for mining permits
All parties eligible to manage mining permits, including religious groups and universities, must go through a selection process that is necessary to ensure fairness and equal treatment, according to a Constitutional Court ruling.
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Heavy machinery operates in a coal mining site at Sumber Batu village, West Aceh regency, Aceh on May 24, 2024. (Antara/Syifa Yulinnas)
T
he Constitutional Court has ruled that the government cannot directly award mining permits to selected recipients, including religious organizations and universities, and asserted such licenses must instead be granted through a clear, transparent and objective selection process.
On Thursday, the court partially granted a petition challenging several provisions in the revision of the Mineral and Coal Mining Law passed last year.
One of the challenged articles allows the central government to grant priority allocations of mining business license areas (WIUP) by directly appointing cooperatives, small and medium enterprises (SMEs), businesses owned by religious organizations and, under certain conditions, universities.
In its ruling, the court declared provisions related to the “priority allocations” conditionally unconstitutional, as they remain valid only if such permits are granted not through a direct appointment, but rather through clear parameters, as well as objective, transparent and accountable assessment.
Justice Enny Nurbaningsih noted the law revision failed to establish clear criteria for determining eligible recipients, leaving broad discretion that could result in biased decisions when selecting entities for the priority allocations.
“Without clear parameters, subjectivity could become dominant, which could result in increased environmental harm,” she said, as she read the ruling at Thursday’s hearing.
She added that a selection process was necessary to ensure fairness and equal treatment among applicants with different levels of experience, resources and capacity to conduct mining activities.
