Coal mining concession sparks rift in Indonesia's largest Islamic group

Several Nahdlatul Ulama leaders, factions vying for control over lucrative venture

- Wahyudi Soeriaatmadja Indonesia Correspondent

The Indonesian government's controversial decision to award coal mining concessions to religious groups in 2024 has splintered the leadership of the country's largest Islamic organisation.

Nahdlatul Ulama (NU) is embroiled in bickering as several of its leaders and factions vie for control over the highly lucrative venture, prompting many of its grassroots members to call for the return of the mining rights to the government.

The group, which was in August 2024 awarded a 26,000ha coal mining concession in East Kalimantan formerly granted to a Jakarta-based company, has not started operating the mine.

Most of its grassroots members have demanded that their leadership return the mining concession to the government, citing it as the primary cause of the ongoing dispute.

They have also urged the leadership to reconcile their differences, warning that their open hostilities are damaging the group's reputation.

Dr A'an Suryana, a visiting fellow at the ISEAS - Yusof Ishak Institute, described the unfolding crisis as significantly deeper than the internal frictions that the Islamic group had faced in the past. He attributed the conflict to a clash between two top elite camps, each backed by rival business groups.

"NU cannot manage a mining business on its own. It needs to partner with a private business. The coal mine has not even started operations, yet the fighting over it is already under way," he told The Straits Times.

In May 2024, then outgoing President Joko Widodo issued a government regulation allowing religious organisations to operate mines, despite doubts about whether these groups would have the technical capacity and financial strength to develop mines.