Three Sulawesi Governors Refuse to Extend Vale's Permit, Flood of Support

TheIndonesia.id - Indigenous leaders of Luwu, South Sulawesi, or Datu Luwu Andi Maradang Mackulau support the Government of South Sulawesi for the refusal to extend the contract of work PT. Vale Indonesia Tbk. This rejection was voiced by the Governor of South Sulawesi Andi Sudirman Sulaiman along with two other governors in Sulawesi.

"As a traditional leader of Luwu, I support it. But we really need to work together to emphasize the Central Government," he said in a statement received by Antara in Makassar, Monday, September 12, 2022.

Andi Maradang also supports the aspirations of the Luwu community regarding the same rejection of the nickel company in Luwu Timur, as long as it is carried out elegantly and follows existing regulatory procedures. The most important thing, said Datu Luwu, is that all traditional leaders together with the local government should come together to face the Central Government to explain all this properly.

The economist who is also the Chairman of AMKOP Business School (STIE AMKOP) Bahtiar Maddatuang assessed that if PT Vale's mining area in East Luwu was managed by the government, it would bring tremendous benefits, especially for the welfare of the people of South Sulawesi.

“This will definitely have an impact on improving people's welfare. And I really appreciate and this must be supported by the people of South Sulawesi and the government, in this case, the Central Government,” he said in response to the South Sulawesi Governor's decision to refuse Vale's permit extension.

He conveyed that one of the problems in the welfare of the people is the local public budget (APBD) posture which is routine expenditures larger than spending allocations for development and the welfare of the community. Likewise, local governments rely heavily on the General Allocation Fund (DAU) and the Special Allocation Fund (DAK) which were set by the central government.

“It is very difficult to see the posture of our APBD, in this case, a development that encourages the level of people's welfare. Because the posture of our APBD is bigger on routine than development, while when we talk about the ability of the APBD to finance the development of the people in the regions," he said.

If the management of the mine is handled by the provincial government, it will have an impact on increasing the APBD. The income obtained can reach trillions of rupiah.

“Just imagine, if it is managed by the provincial government and included in the APBD, it will certainly have implications for improving people's welfare. Maybe we can build good schools, good high schools, capital to MSMEs, build good infrastructure, many things can be done if for example regional income can be very stable," he explained.

The chairman of the Advisory Council of the Indonesian Employers' Association (APINDO) of South Sulawesi, Latunreng, also supports the firm stance of the Governor of South Sulawesi (Sulsel) Andi Sudirman Sulaiman. Latunreng assessed that the potential of regional natural wealth must be maintained so that it brings optimal benefits to the region and society. South Sulawesi's human resources have been able to manage an extraction.

"Of course, I support and applaud the Governor's strategic thinking," said Latunreng in his statement in Makassar, Saturday.

He said that the potential of natural wealth, including the potential of the South Sulawesi region, can also provide opportunities for domestic investors or entrepreneurs. Because over time, the existence of human resources in Indonesia is getting more creative, expertise and ability and competitive.

“Technology is also everywhere, we can buy and use it. In the past, because our country was very rich in natural resources, of course, the government was looking for large capital and human resources and special skills, we asked for investment, there was nothing wrong in the past," he said.

Three Governors from the Sulawesi region expressed their agreement not to extend PT Vale Indonesia Tbk's contract of work permit, during a Hearing Meeting (RDP) with the Secretary-General and Acting Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources of the Republic of Indonesia and a Public Hearing Meeting with Vale and Committee VII of House of Representatives Commission VII in Jakarta, Thursday.

The statement was conveyed by the Governor of South Sulawesi Andi Sudirman Sulaiman, Governor of Southeast Sulawesi Ali Mazi, and Governor of Central Sulawesi Rusdy Mastura to PT Vale Indonesia Tbk and DPR. The Governors requested that Vale's land concessions be returned to their respective Provincial and Regency/ City owned-enterprises.

Governor Andi Sudirman stated that the benefit of PT Vale was still minimal in its contribution to South Sulawesi, including for the environment and regional income. "What PT Vale has done is less than optimal in contributing 1.98 percent of revenue to the provincial government, so we don't think there is an option to extend the contract of work for them," he explained.

If Vale's land concession can be managed by BUMD, he said, it will be ready to control it for the welfare of the community. "We defend this not because we are governors or have an interest, no, but this can be controlled by all the people," he said.

"South Sulawesi has natural resources that should be directly enjoyed by the community. We must not be spectators in our own territory, we must be sovereign in our own territory, how to fight for the rights of the people," he said.

Meanwhile, the Governor of Southeast Sulawesi, Ali Mazi, also asked the central government not to extend PT Vale's contract of work. "The concession can be given to a regional company, so it won't be long. So (the community) will enjoy the results of our wealth that have been given to us from God," he said.

The Governor of Central Sulawesi, Rusdy Mastura, said the same thing.