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Deadly Coal 4 Series EXTRACTIVE OLIGARCHY AND THE DECLINING QUALITY OF PEOPLE’S LIFE “How the Power of Coal Extraction Oligarchy in Indonesia Makes the State Neglectful toward the Declining Quality of Resident’s Life” Extractive Oligarchy and the Declining Quality of People’s Life “How the Power of Coal Extraction Oligarchy in Indonesia Makes the State Neglectful toward the Declining Quality of Residents’ Life: Case Study of Central Bengkulu Regency, Malinau Regency, and Samarinda City” Team of Authors Alwiya Shahbanu, Delvi Indriadi, Ineke Pratiwi, Juwitha Jekson, Muh. Jamil, Pradharma Rupang, Siti Maimunah, Theodorus GEB, Uli Artha Siagian Editors Alwiya Shahbanu & Siti Maimunah Layouter Afriyanto Haribudi Kanangan Publisher & Distributor Jaringan Advokasi Tambang Jl. Mampang Prapatan IV No 30B, RT 08/RW 02, Special Capital Region of Jakarta, Indonesia Phone: 021-7997849 FOREWORD One of the mandates of Jaringan Advokasi Tambang (the Mining Advocacy Network / JATAM) is to continue the production of knowledge on the destructive power of mining. One of JATAM’s focuses is coal mining commodities. Knowledge production is part of the efforts to communicate viewpoints and continuously renew indisputable evidences of the destructive power of coal mining, especially from the immediate perspective of residents or communities around the mine. This perspective was taken because since its inception, JATAM has been an organization that consists ofwho communities faithfully oppose of victims dehumanization and fighters inof theliving mining space circle. by the They oil andare communitiesgas and mining industry since 1995. This collection of writings that is now in your hands is a form of continuation to the Deadly Coal Series Dark Generation, published in 2010; then Unlimited Coal Production in 2013; Not Only Is It Dirty, (Serial Mautnya Batubara) by JATAM. The first book was Deadly Coal: Coal Extraction and Borneo whichCoal Is was Deadly: produced Portraits by JATAM of the along Destructive with the Power Waterkeeper of End-to-End Alliance. Coal Production toward People’s Safety and the Climate in 2016, and Hungry Coal: Coal Mining and Food Security in Indonesia in 2017 2018 together with JATAM’s resistance allies in several areas, namely Yayasan Genesis (the Genesis This collection of writings is the fruit of JATAM’s writing research program throughout 2017 - Samarinda, and JATAM Kalimantan Utara (North Kalimantan JATAM / JATAM Kaltara) in Tarakan. Foundation) in Bengkulu, JATAM Kalimantan Timur (East Kalimantan JATAM / JATAM Kaltim) in “How the Power of Coal Extraction Oligarchy Makes the State Neglectful toward the Declining Quality ofThis Residents’ collection Life”, of writings Case Study is titled of Central Extractive Bengkulu Oligarchy Regency, and Malinau the Declining Regency, Quality and Samarinda of People’s City. Life: Through this collection, JATAM Nasional (National JATAM / JATAMNAS) together with JATAM Kaltara, Genesis Bengkulu and JATAM Kaltim aim to report on how the destruction of the Malinau River ecosystem—a region that declared themselves as a conservation regency—occur. We would also like to shed a light on the impoverishment trap by means of the destruction of Bengkulu River, as for water. well as the oligarchy power and social-ecological crisis of farmers relying on mine pits in Samarinda The shortage of water sources in villages by the rivers of Sumatra and Kalimantan has become a pattern of mining industry’s destructive power toward water; the prominence of oligarchy power— which is the backbone of the coal mining industry—has become a major factor in the survival of mining economy that destroys everything, which all lead to the absence of the state in the midst of its people who increasingly suffer. i 3,161 of them are coal mining licences, taking up to 12.6 million hectares of land, which is equivalent toBased 190 ontimes JATAM’s the area records of DKI up Jakarta to January or 10% 2017, of the there Indonesian are 8,710 Archipelago’s Mining Business land area.Licences The (IUP)risks thatand must be borne are damage to water ecological infrastructures in Kalimantan and Sumatra, the two main islands of coal extraction. Residents’ health is at stake due to the damage caused on these water sources. This happens against the backdrop of the Joko Widodo and Jusuf Kalla regime’s policy directions that devote themselves colossal infrastructurization project—increasingly submerging the nation into economic addiction andto pursue coal energy. 7% economic growth via an ambitious 35 Gigawatt (GW) electricity project target and a inNot the to demolition mention that of nature Indonesia and inis coalentering business the 2018practices. - 2019 Some political of them year, are which involved causes in sponsoring oligarchy power in all regions rich in natural resources, one of it being coal oligarchy, to fiercely go full throttle presidential candidates they support in order to win in electoral politics, guaranteeing their business aand convenient practicing continuity. rent-based political financing with regional leaders, parliamentary candidates, and In the end, nothing is perfect. We are open to criticism and future improvements. Thank you to all authors from various JATAM alliances in crisis areas, to our editors, layout designer, and other parties who have lent a helping hand, including those who have supervised the process of composing this collection of writings, one of them being Siti Maimunah from the Executive Board of JATAM. Jakarta, April 5, 2018 Rumah Perlawanan JATAM (JATAM House of Resistance) Merah Johansyah Ismail National Coordinator of JATAM ii CONTENTS FOREWORD .................................................................................................................................................... i CONTENTS ....................................................................................................................................................... iii GLOSSARY .............................................................................................................................................. iv LIST OF FIGURES ........................................................................................................................................... vii CHAPTER 1 Introduction .................................................................................................................. 1 CHAPTER 2 Extractive Oligarchy & Decreasing Quality of People’s Life ........................ 7 CHAPTER 3 The Destruction of River Ecosystem, the Irony of Malinau Regency ........................................................................................................... 21 CHAPTER 4 The Impoverishment Trap, Coal Industry & the Destruction of Bengkulu Watershed ...................................................................................... 43 CHAPTER 5 Makroman Residents in the Midst of Oligarchy Power & Social-Ecological Crisis ............................................................................... 59 APPENDICES .................................................................................................................................................... 80 BIBLIOGRAPHY ................................................................................................................................................. 100 RESEARCHER’S PRIFILES ........................................................................................................................... 102 iii GLOSSARY Bai : Bush Balah : Old and young secondary forests Belanyat : Rattan bag Beluko : Hat / accessories used for dancing Bening : Baby carrier Beronang : Container made of rattan that can be used as a storage for goods Bukut : Heath forest Cema / Fulung : theirTree usedlands to excavated make sago for coal Fee : Profit-sharing model provided by corporations to residents willing to have Ganti Kerjo : Compensation for work done during land-clearing Ingen : Tool for carrying paddy Logpon : Wooden ports Luwang Taong : ceremonyJungle Lunau : Wrapped rice, the size of a human thigh, for Pelancau traditional Mbagi : Splitting resident-owned land to prospective buyer Ngusah : Traveling to the forest to look for agarwood Ngrumat : Taking care of land until one finds prospective buyer Nyambut : Borrowing land for rice-planting Panggah : Swamp forest Pat : Mat made of rattan Puru : Dead Senguyun : Working group with shifts Sayuran kebatan : goodsQuick-wilting vegetables Steleng : Cabinet made of glass, commonly used by stall owners to store their Urip : Life iv LIST OF ABBREVIATIONS AD : The Army AMNK : Artha Marth Naha Kramo [coal mining company] APBD : Local Government Budget B3 : Hazardous Toxic Substances BDMS : Baradinamika Muda Sukses [coal mining company] BP3K : Agriculture, Fisheries and Marine Extension Center CEDAW : Convention on the Elimination of All Forms of Discrimination Against Women CEM : Cahaya Energi Mandiri [coal mining company] CnC : Clean and Clear CSR : Corporate Social Responsibility CV : Commanditaire Vennootschap DAS : Watershed DDT : Dichloro-Diphenyl-Triclorothane DLHD : Regional Environmental Agency DPRD : Regional House of Representatives FPPM : Forum Pemuda Peduli Malinau (Malinau Care Youth Forum) Golkar : Golongan Karya (Party of the Functional Groups) [political party] GW : Gigawatt Ha : Hectare HANURA : Hati Nurani Rakyat (the People’s Conscience Party) [political party] HPH : Natural Forest Management Permit HRD : Human Resources Department ICW : Indonesia Corruption