Dahlan Iskan: The Government’s Anger Has Peaked

Jakarta, CNBC Indonesia The former Minister of State-Owned Enterprises, Dahlan Iskan, highlighted the ‘drama’ of the ban on coal exports which has drawn a negative response from Indonesian coal industry players.

The policy of a month-long export ban is suspected to be a potential energy crisis experienced by PT PLN (Persero) which is experiencing a coal supply crisis.

Dahlan mentioned the threat of an energy crisis in sight. “Domestic power plants are threatened with death, lack of coal. Even if you can get coal, the price exceeds the spike in cooking oil prices. That’s because the export price of coal has reached the roof of the joglo,” explained Dahlan, in his writings, Permit Crisis on the website. Disway.id, quoted Monday (10/1/2022).

The threat of this crisis has forced domestic electricity entrepreneurs to buy coal at the same price as electricity entrepreneurs in Japan.

“Hands up. Give up. PLN itself then began to save coal -in an expensive way: buying gas from LNG. Which is also more expensive,” said Dahlan.

Here is Dahlan Iskan’s full article:

If the people could applaud, it seems that President Jokowi immediately received a standing ovation: he dared to revoke mining permits en masse throughout Indonesia. The number is up to 2,078 permits. There are coal mines, many other mineral mines.

It seems that no president of this republic has ever been so brave. Until someone judged that the president was angry again – it could be seen from his expression.

Revoking 2,078 permits is not an easy matter. Revocation of the permit has legal consequences. Also, the consequences of investment: business certainty.

That it was the president himself who revoked it – not the ministerial level – is a sign that the government’s anger has reached its peak.

Logically, the president accepted the first proposal: the need for sanctions to permit holders who neglect their permits. Then, a warning is issued by the relevant agency. After being reminded stubbornly, it is proposed that the permit be revoked.

The one who revokes is the agency that issued the permit. So that this time the president himself announced the revocation must be very serious.

In a row, there are two national issues that are considered sensitive lately.

The first is about the threat of an energy crisis. Domestic power plants are in danger of dying out: a shortage of coal. Even if you can get coal, the price will exceed the spike in cooking oil prices. That’s because the export price of coal has reached the roof of the joglo.

Domestic electricity entrepreneurs have to buy coal at the same price as Japanese electricity entrepreneurs: raise your hand. Surrender.
PLN itself then began to save on coal -in an expensive way: buying gas from LNG. Which is also more expensive.

Thus, “expensive” power plants are powered by very expensive LNG fuel. In fact, if there is sufficient coal, this type of power plant is only turned on during peak hours: 17.00 to 22.00. Namely, when people use more electricity. The power plants powered by LNG, for example, are in Muara Tawar, Muara Angke, and Tanjung Priok.

The situation is disgraceful: a country rich in energy, threatened with energy shortages. So, the government hastily made a decision: stop coal exports. Up in arms. Indonesia’s name became world news. In a bad connotation.

However, the shortage of coal in the country can be immediately resolved. Of course there must be a victim: the director of PLN in charge of primary energy supply was removed.

PLN is very difficult: it has three direct owners – in addition to many others.

PLN must submit to the Minister of Energy and Mineral Resources, the Minister of State-Owned Enterprises, and the Minister of Finance. In terms of supplying coal, PLN is tied to the Ministry of Energy and Mineral Resources.

Planning for the use of coal for the next year must be approved by the ministry.
There are only two problems: PLN’s proposal to the minister is late or the minister’s approval is late. Even if the approval is late, why doesn’t PLN pursue, collect, shred the agreement?

Because it was not the ESDM minister who was replaced, the public concluded that the PLN directors were late: that’s not necessarily true. Or so.

Was last week’s mass revocation of mining permits also a quick reaction to the recent sensitive situation? Namely, a matter of a few people controlling the most land?

The President does seem sensitive to this matter. The speech by the Deputy General Chair of the MUI, Dr Anwar Abbas on this matter immediately made President Jokowi ignore the text of the speech. Then, respond without text what Abbas said. Then, they invite anyone, including people like Anwar Abbas, to apply for a permit. The president will provide a large area of ​​land.

Even in front of the 34th NU Congress in Lampung. The president offered vast land for NU. So that the vast lands are no longer controlled by a few people.

And the total area of ​​land whose permits were revoked last week was: 2 million hectares.

Come on… O hunters of pertamax: dare to hunt down the president’s offer.

Of course the land to be divided will be available.

Meaning: that is if the land owner whose permit is revoked
it takes the revocation for granted.

Some think it’s not that easy. “There will be a flood of lawsuits in the Administrative Court,” said a PDI-P figure who I contacted yesterday.

Unfortunately, we don’t know who will be included in the 2,078 yet. For the sake of information disclosure, anyone should have direct access: who was revoked, how much area, in which district.

We also don’t know: who holds the list now. ESDM? BPN? Forestry?
What is clear is that since the Omnibus Law, all district authorities in the mining sector have been removed: everything has moved to become a central affair.

That’s why, the center is pulling it off.
So, please give a standing ovation: maybe now, maybe even after a complete reading of whoever has their permission revoked.

Permits have been revoked. A standing ovation has been given. Keep clapping your feet – until it’s clear no one is contesting the repeal.

(Dahlan Iskan)

[Gambas:Video CNBC]

(sys / dhf)



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