Various Modes of Illegal Charcoal in East Kalimantan

Illegal coal mining is endemic. Various modes are performed. With patgufold, permits in hand, profit is grasped.

A simple unfinished house stands in the expanse of ex-coal mine excavated land. About 20 meters from the type 36 building, there is a 50 square meter gaping mine pit that is filled with green water.

Residents in Loka Bahu Village, Kunjang District, Samarinda, East Kalimantan recognize the residence as part of low-cost housing for low-income people. However, for two years, the 'developer' never finished the project.

"They only built one house, after that they dredged coal," said the head of RT 19, Sapriansyah when met Katadata.co.id, last December. The developer as well as the miner worked for about two years. They stopped their activities six months ago.

Until now, Sapri did not know exactly who the housing developer was. "I don't understand the issue of permits because I have just served as the head of the RT," he said.

So far, local residents think that the developer is in the process of building housing. Because, usually there is maturation or land clearing,the process of leveling the ground using heavy equipment. Apparently, apart from ripening, they were dredging the dark black mineral. 

The locals didn't suspect anything. Moreover, the “developer” was generous enough to provide “pocket money” for RT and RW officers, as well as village youth organizations. “Youth groups get a quota of Rp. 2 million per month. They also recruit residents as workers,” said one villager.  

Apart from the Loka Bahu Village area, illegal mining with the mode of building housing is seen in the middle of Samarinda City. In the Bengkuring Housing area, East Sempaja Village, North Samarinda District, for example, a former mining pool can be seen.

Head of the Settlement and Spatial Planning Agency (PUPR) Dadang Airlangga said his team had received three reports of housing developers suspected of illegally mining. "All the perpetrators are commercial housing developers, not cheap housing," said Dadang.

According to him, from the reports from the community, the developer uses the land maturation process mode. Maturation can indeed be done after the developer has obtained various housing development permits. For example, they should get the green light from the Environment Agency.

It is hoped that with this permit there will be a monitoring process so that it does not deviate from mining. This is because coal mining permits have different routes, some of which require special permits, such as Mining Business Permits (IUP). That's why land maturation is different from coal dredging. Land resulting from ripening is usually moved to another place.

So far, the Samarinda PUPR Service has received three reports of suspected illegal mining using this method. PUPR submitted the report to the Environment Agency and the Energy and Mineral Resources (ESDM) Office. "The case has not yet entered the realm of law," said Dadang.

Jatam Kaltim dynamist Pradarma Rupang said the land preparation mode was often carried out but there was little enforcement from the apparatus. The only case of illegal mining with maturation mode in Samarinda that has ever come to court is a development project Green House Mulawarman University in Teluk Dalam, Tenggarong Seberang District in 2010.

The case was revealed from the results of Jatam's report to the authorities. The police had dragged the project contractor and the former Dean of the Faculty of Agriculture, Mulawarman University. They are considered to be involved in cooperation under the pretext of maturation activities.

“After this case was uncovered, there was no further disclosure with a similar mode. Even though the practice in the field continues," said Rupang.

Land preparation, he said, is just one of the modes of illegal mining that is rife in Bumi Etam. Various ways are carried out by illegal miners, namely through renting residents' land, permits for oil palm land, to cooperating with official mine owners.  

Tempting Profits

The content of black gold in the land area in Samarinda, East Kalimantan, attracts the interest of entrepreneurs, both those who run their business legally or illegally. Hanafi, not his real name, one of the seasonal entrepreneurs who is illegal to mine.

He exploited this natural resource only when the price of coal was high. When that moment came, Hanafi was looking for a resident's land with an area of ​​at least two hectares. The local community calls this activity as embankment or corridor mining.

Usually, he targeted the villages around the mining area. The way to determine land that contains black gold is quite simple. "If it is close to the mining area, there is enough to hoe the coal once you can see the coal," said Hanafi.

If he finds suitable land, he will seduce the land owner. "In order to make a big profit, I have to look for land where the coal is not deep," he said. Access to the location is the next consideration.

After getting the land, Hanafi looks for buyers, either traders or companies holding official permits. He prioritizes traders who are willing to provide transportation from the mine site to the stockpile or coal storage area. Also, those who are willing to bear the freight. Hanafi only bears the cost of the heavy equipment and operators.

Within three months, the middle-aged man was able to mine 2.000 tons with a selling price to the company last year of around Rp 270 thousand per ton. In total, the general's gross income is around Rp. 540 million.

Of this amount, Hanafi pays rent to the land owner for Rp. 3.500 per ton, or around Rp. 7 million. Other costs are in the form of excavator rental and fees for heavy equipment operators. Hanafi's net profit for three months is around Rp. 400 million. "Fortunately, the net is around Rp. 200 thousand per ton," he said.

Another illegal miner, Hasan, not his real name, also uses almost the same method. He shares with residents who own land adjacent to legal mining.

The residents are easy to work with with this profit sharing. The offer is quite tempting because it is almost the same as the land price estimated by the official mining company. "They are reluctant to sell their land to the IUP owner, choosing to work together for profit sharing," said Hasan.

Apart from that, he often cooperates with companies that own IUPs. Mining is carried out with the company's permission. However, the execution is outside the company's work plan which is submitted annually to the local ESDM Office. Hasan is enough to work on the company's untouched land.

Hasan sells the illegal mining products to the company that owns the IUP. In this case, the company also benefits because it does not need to apply for various permits from the government and does not have to pay a reclamation security deposit.

Bodyguard Strong Fight

Hanafi and Hasan realized that their illegal business activities would be under the shadow of prison if they were caught by the authorities. To reduce the risk, they set up a special fund for individuals who can provide information if there is a raid plan.

In addition to the threat of law enforcement, illegal mining also has the potential to get public protests. To get around this, Hasan chose to work with community organizations.

Apart from mass organizations, village youth groups can be invited to work together to secure the business. Youth organizations in Loka Bahu Village, Samarinda, allow illegal mining activities near their homes as long as they receive regular payments.

One youth said his group quoted Rp. 10 thousand for each vehicle carrying coal through his village. The money was withdrawn under the pretext that the community would benefit from mining activities.

“Usually, a day we get Rp 2 to 3 million. We distribute for the daily needs of the members," said the young man. 

Miners who refuse to pay the deposit will be prevented from crossing the road, even the youths do not hesitate to hold their vehicles. The illegal mining entrepreneurs also choose to pay a deposit rather than lose money.

Illegal miners do not dare to fight the youth group they lead. The number of members of the village youth organization reaches 250 people from the local kelurahan. Most of them are teenagers who have just graduated from school and do not have jobs. "They once mobilized thugs, but lost because there were fewer of them," he said.

From the incoming deposit, the youths set it aside to build a guard post and install a portal at the entrance to their village. The guard post has wifi facilities that make the youths feel at home hanging out every day.

Said Amrullah, Head of the Bina Mulya Youth Organization in Loka Bahu Village, admitted that he withdrew millions of rupiah from a coal truck that passed through his village. He argued that the funds were withdrawn for repairs to damaged roads and as compensation for the dust generated.

Not only collecting tribute, Said claims to help control illegal mining. He and his friends once confiscated heavy equipment from illegal miners in their village. “We once detained a tronton truck carrying heavy equipment for up to two weeks. The trucks were released after they applied for a permit,” Said said.

Illegal Coal Miners

Illegal mining thrives as demand flows. Businessmen who have official licenses, both IUP holders and traders holding transportation and sales permits, secretly collect illegal coal.

Deden is a former coal entrepreneur who once bought this illegal commodity to launch his business. The resident of Bontang, East Kalimantan had a black gold sales contract with a pulp company in Java.

In the contract, the Deden company is obliged to supply coal to the pulp company within a certain period of time. If it fails to fulfill its obligations, the company will be penalized. "I also apply a similar contract to coal mining companies," he said, adding that coal supplies came from authorized miners.

At one time, said Dede, happened force majeure which causes coal mining companies to be unable to fulfill the supply according to the contract. Automatically, the company pays compensation for not fulfilling the contract.

On the other hand, Deden could have paid a penalty to the pulp company. "From a business perspective, the problem is not that simple," said Deden. He was worried that the achievement would destroy confidence and thus lose clients. In this position, Deden chose to meet the supply by buying from illegal miners.

The coal entrepreneur holding an IUP in Kutai Kartanegara, Akmal Muzakir, not his real name, also had a similar experience. He is committed to the buyer to meet the supply on a continuous basis. "Instead of being penalized, we seek from illegal miners," said Muzakir.

Rupang said that illegal coal sales business practices like this continue to proliferate due to weak supervision. At least, the Mining Inspector or an employee of the Ministry of Energy and Mineral Resources in East Kalimantan has never brought a single case of violation of coal mining to the criminal realm.

East Kalimantan Mining Inspector Officer Denny Wibawa defends himself. A total of 38 inspectors throughout East Kalimantan were unable to move optimally because of funding problems. “The amount of operational funds depends on the local government's priority scale. Currently we get Rp 100 million for one year's activities. It's not enough," he said.

Rupang highlights illegal mining because the demand is relentless. "If there are no entrepreneurs who accommodate illegal coal, mining activities will stop automatically," he said.

The government, Rupang continued, should prioritize supervision at the point of delivery of coal, both local and export. Therefore, the plan by the Corruption Eradication Commission (KPK) to tighten the supervision of coal trade at docks and ports is considered the right step. But it is believed that the KPK will not succeed if it works alone.

Therefore, synergies with other agencies must be built. Rupang supports the Director of Coal Business Guidance at the Ministry of Energy and Mineral Resources, M Hendrasto, in collaboration with the Ministry of Trade, Customs and Excise (Ministry of Finance), and the Ministry of Transportation in developing operational standards to improve supervision of the coal trade. "All parties must monitor, not just us," said Hendrasto.