In order to launch a business, coal entrepreneurs in East Kalimantan are diligent in making deposits to government officials. The Regent of Kutai Kertanegara was arrested.
The booming coal business in East Kalimantan is entwined in an 'intimate' relationship between businessmen and state officials. Local government officials often benefit from deposits when quoting from entrepreneurs who want to clear up their affairs, from issuing permits to supervising the work of corporations.
The disclosure of facilitation payments from coal businessmen to local government officials was revealed in the corruption trial of the former Kutai Kertanegara Regent Rita Widyasari. The Corruption Eradication Commission (KPK) uncovered the practice of gratification when Rita served as regent for two terms, 2010 – 2015 and 2016 – 2021.
In July last year, a judge sentenced Rita to 10 years in prison for accepting bribes of Rp. 110 billion. One of the gratuities comes from the process of obtaining an environmental impact analysis permit (Amdal) and an environmental permit.
Entrepreneurs get permits for a special fee through consulting firms. This third party then submits the deposit to local government officials. If there is no deposit, the permit will not be issued.
Former Kutai Kartanegara Regent Rita Widyasari after undergoing his first trial at the Corruption Court, Jakarta, Wednesday (21/2/2018). (BETWEEN PHOTOS/Akbar Nugroho Gumay)
The director of Green Borneo Consultants, Basori Alwi, was a witness at Rita's trial last year. He stated that each company must prepare Rp 60 million to obtain an Amdal permit. The money under this table for the initial stage of management is Rp. 10 million. Meanwhile, Rp 50 million was handed over when the EIA letter was signed by the regent.
Not only that, a special deposit is required in the Environmental Management Effort (UKL) and Environmental Monitoring Effort (UPL) permit processes. The rate is IDR 35 million per company.
According to Basori, the levy has been imposed since the issuance of Government Regulation No. 27 of 2012 concerning Environmental Permits. This regulation requires that every business and/or activity that has an important impact on the environment has an Amdal and UKL-UPL permit.
Prior to the issuance of the regulation, the deposit for obtaining an Amdal permit was around IDR 5-10 million in the 2010-2012 period. "Before 2010 there were no tariffs," said Basori in the lawsuit file obtained by Katadata.co.id.
Since PP No. 27/2012 was issued, Basori has taken care of the Amdal for 26 coal companies. "I once handed over Rp 1,3 billion for the management of the Amdal permit," he said. Because they need each other, this symbiotic relationship of mutualism continues to build.
Green Borneo Consultant's office at Taman Sari Grand Samarinda, East Kalimantan (17/1/2019).(Ajeng Dinar Ulfiana | KATADATA)
One of the companies that manages the EIA permit through Basori is PT Rinjani Kertanegara. Through Basori's agility, the company which went bankrupt since the end of 2017 because it was involved in defaulting on its debt managed to get an Amdal.
Whereas the local community in 2016 protested the coal dust that came out of the conveyor belonging to PT Rinjani. Dust and noise disturb the people who live close to the company's location in Bakungan Village.
Basori said that he handed over the Amdal fee of Rp 50 million per company when he took the decision letter signed by Rita. "I leave it to the officers at the Kutai Kertanegara Environmental Agency," said Basori.
Basori's testimony was strengthened by a lecturer at the Faculty of Agriculture at Mulawarman University Samarinda Hamsyin who is also a commissioner at the consulting company PT Agronusa Sartika. During 2013-2017, Hamsyin managed seven Amdals with a fee of IDR 50 million per company.
This illegal quoting practice was confirmed by the Head of the Environmental Impact Assessment Section of the Kukar LHK Service, Aji Sayid Muhammad Aji. He revealed that he has regularly deposited money for the regent since 2014.
During 2014-2017, for example, he collected around IDR 2,3 billion which was handed over to Rita. Ali calls it money thanks to Rita, something that is considered normal as a tradition. "I know from officials before me and from consultants who often take care of permits," said Aji.
Aji said he did not directly hand over the money to Rita, but through his right hand, known as Team 11. The names in this team that were mentioned in the trial were Suroto and Abrianto Amin.
Aji's statement is in sync with the testimony of Rita's aide named Ibrahim. He admitted that he often received envelopes containing money from several of Rita's right-hand men. However, Ibrahim did not know the number.
Rita's attorney, Noval El Farveisa, said that during the trial there were no witnesses who said that Rita ordered and received levies for the management of Amdal and environmental permits.
"In the trial there were no witnesses who said that Rita gave the order and received it directly," said Noval when contacted some time ago.
Noval assessed that the information that said Rita had received money was only based on information from her aides.
However, Noval confirmed that levies to coal companies through consultants were an old practice, even before Rita's time. "So that's an old habit that they carried out, from the old head of the service," he said.
Jatam Kaltim dynamist Pradarma Rupang said the deposit for the administration of the Amdal and other environmental permits is an illegal levy because there are no specific rules. Even if there is an official levy, it should go to the regional treasury.
Rupang suspects that the issuance of the Mining Business Permit (IUP) during Rita's time did not rule out the possibility of bribery. "Rita is the regent who issued the most IUPs, reaching 200," said Rupang.
One of the coal entrepreneurs, Akmal Muzakir, not his real name, said that after the trial of Rita's corruption case, the levies when applying for permits continued. "The deposit is still there, but the amount is not as big as it used to be," he said.
Deposits are not only in managing permits. The coal entrepreneurs handed over tribute to the security forces, both by official and illegal entrepreneurs. "The deposit is handed over to the liaison officer, later the response will be by sending one or two personnel to routinely guard the mine site," said one consultant.
Regarding the phenomenon of illegal levies, Indonesia Corruption Watch (ICW) researcher Firdaus Ilyas stated that the government needed serious attention. Various deposits, he said, allegedly took place in various sectors and made the company's costs swell. To suppress it, many companies then cover up in various ways, including manipulating the coal trade.
Writing Source: Dataword