PANGKALPINANG – President Director of PT Timah Tbk, Restu Widiyantoro, has proposed a partnership scheme through cooperatives as a solution to accommodate community mining activities legally.
This proposal was conveyed by Restu on various occasions, including during a meeting with mining representatives from four regencies in the Bangka Belitung Islands Province following the demonstration on October 6.
In the meeting with the mining representatives, PT TIMAH Tbk also brought in the Provincial Cooperatives and SMEs Agency of the Bangka Belitung Islands to provide outreach and education related to cooperative formation for mining communities.
The cooperative is expected to serve as a platform for community miners to directly partner with PT TIMAH Tbk, including regarding the payment of mining service fees from the company’s IUP (Mining Business Permit) to community members organized under a cooperative.
"Regarding direct service payments to miners, current regulations prohibit us from receiving or making direct payments to individual miners. We previously suggested using third-party partners. However, that created many issues such as high deductions. So we proposed using cooperatives instead," he explained.
Acting Head of the Bangka Belitung Cooperatives and SMEs Agency, Muslim El Hakim, stated that based on the meeting with the mining communities, there was considerable enthusiasm for forming cooperatives. Some existing cooperatives have even started preparing themselves to partner with PT TIMAH Tbk.
He explained that the agency, together with PT TIMAH Tbk, is promoting the "Merah Putih" Cooperatives already established in villages—especially in those within PT TIMAH Tbk's IUP areas—to become partners of the company.
"In our discussions with PT TIMAH Tbk, we agreed to optimize the 'Merah Putih' cooperatives in villages, particularly those within the company's IUP areas, so they can collaborate with PT TIMAH Tbk on mining services," he said.
He acknowledged that there are certain requirements that cooperatives must meet to manage mining services. However, with support from PT TIMAH Tbk and assistance from the Cooperatives and SMEs Agency, this is achievable.
"If I’m not mistaken, there are two cooperatives that already have IUJP (Mining Service Business License), but they’re not yet operational due to some unmet requirements. There are many technical elements that must be fulfilled for mining service cooperatives, and we will provide assistance according to our agency’s roles and authority. We’ll also coordinate with relevant agencies and provide guidance, training, and necessary certification," he added.
Muslim revealed that PT TIMAH Tbk had requested his agency to assess the existing mining cooperatives in the Bangka Belitung region in order to accelerate their readiness.
"We’ve been asked to evaluate the mining cooperatives in Bangka Belitung. Some cooperatives already exist, but they’re not yet operational. We’ll assess their health so they can eventually become partners of PT TIMAH Tbk and receive mining service fees," he explained.
"PT TIMAH Tbk has already pushed for this, and hopefully it can be realized. Based on their direction, the focus will be on the Village ‘Merah Putih’ Cooperatives—around 10 to 12 such cooperatives are already established in villages with PT TIMAH's IUP areas," he continued.
Among the key challenges faced by cooperatives in developing their mining service businesses is the issue of capital. This needs to be discussed comprehensively.
"The main challenges involve capital—or what we often call the 'three M's': money (capital resources), machine (equipment), and manpower (human resources)—because the cooperatives need to have skilled personnel. But based on our recent discussion, the existing cooperatives are ready to help," he said.
He hopes that through the collaboration between PT TIMAH Tbk and cooperatives, cooperative members will directly benefit in terms of improved welfare.
"Actually, both cooperatives and CVs (Commanditaire Vennootschap, or Limited Partnerships) are legal business entities. But the difference is, CVs are profit-oriented for shareholders, while cooperatives focus on maximizing benefits for their members. So, miners who become cooperative members won’t only earn from their mining services, but will also receive surplus dividends (SHU) periodically—so they benefit twice," he concluded. (*)
