In the near future, the Indonesian Election Commission (KPU) will conduct regional elections (pemilukada) for 37 provinces and 508 districts/cities across Indonesia. The substantial funding required often leads candidates to engage in loan practices and form symbiotic relationships with business actors in the forestry and mining sectors to ensure that elected regional leaders can reimburse the funds spent, along with profits, through the issuance of resource management permits and local development projects. These loan practices and symbiosis are suspected to foster money laundering crimes. Research and Development at the Ministry of Internal Affairs (Litbang Kementerian Dalam Negeri) states that the required funds to become a regent or mayor average around IDR 30 billion, while on the provincial governor level, it can reach IDR 100 billion. The need for funds to secure votes from increasingly transactional voters diminishes the chances of obtaining qualified candidates. On the contrary, there is a greater likelihood of corruption from elected candidates seeking to quickly recoup their “investment.”
The significant flow of funds in these elections is suspected to cause extensive environmental damage and financial losses to the state. In light of these issues, the Indonesia Working Group on Forest Finance (IWGFF), together with Forest Watch Indonesia (FWI), the Clean Election Coalition (Kopi Bersih), and the Visi Nusantara Maju Study Institute (Vinus), advocate for the “green democracy” movement. This movement aims to ensure that the regional election process is free from money politics, cost-effective, and produces leaders with visions and missions for developing green economies in their regions.
In a press release, IWGFF Director Willem Pattinasarany stated that loan practices during elections pose a serious threat to Indonesia’s democratic process and the preservation of its environment and natural resources. The Financial Transaction Reports and Analysis Center (PPATK) reported approximately IDR 51.47 trillion in suspicious transactions involving around 100 legislative candidates ahead of the 2024 Elections, providing undeniable evidence of these corrupt practices. This democratic process has also become a venue for money laundering related to environmental crimes and other offenses.
Willem added that it is crucial for the people to start caring and rejecting the “early morning attacks” given by candidates who are insignificant compared to the long-term environmental damage and even interfere with health, infrastructure development, and livelihoods of the community itself.
On the same occasion, Forest Watch Indonesia Campaign Manager, Anggi Putra Prayoga, also pointed out that what has to be watched out for nearing this regional election is the “sale” of issuance of new permits, as it will inevitably lead to the destruction of Indonesia’s natural resources. Based on research and investigations conducted by FWI and civil society organizations (CSOs) in various regions, three main routes for permit abuses in Indonesian forest areas have been identified: 1) Forest Area Release, 2) Forest Utilization Directives, and 3) Ex-HPH Activation.
In 2021, the largest commodity for forest area releases was palm oil plantations covering approximately 5.5 million hectares, with the remaining land allocated to cocoa and sugarcane. The total forest area released in 2021 amounted to 5.9 million hectares, with the largest releases occurring in Central Kalimantan Province with 1.16 million hectares, and Riau Province with 1.14 million hectares. FWI also found that the total area designated for new forest utilization permits in 2021 was 13.5 million hectares, with the largest allocations in Riau Province (1.8 million hectares) and South Papua Province (1.16 million hectares). Ex-HPH activations targeted for new permit issuances were found in Sumatra, Kalimantan, Sulawesi, Maluku, and Papua regions, covering a total area of 35.8 million hectares.
The alarming increase in permit abuses during the transitional period of regional governments must be watched closely, as it threatens Indonesia’s forest and land control, potentially eliminating the existence of indigenous communities. These permits are likely to drive deforestation in the future.
Jeirry Sumampow, Chairman of the Clean Election Coalition, emphasized the importance for the government, especially electoral authorities like the KPU and Bawaslu, to reduce the high campaign costs which must be shouldered by candidates. The state must take responsibility for this matter. Aside from preventing candidates from seeking illegal sources to fund their campaigns during the regional elections, it will also encourage them to compete with pragmatic development ideas to win voter support.
It is very important to revise electoral laws as soon as possible and ensure that electoral bodies such as the KPU and Bawaslu enforce strict rules and penalties for candidates who violate them. They should no longer treat their commissioner positions as transactional venues with candidates, he added.
Meanwhile, Yusfitriyadi, Chairman of the Visi Nusantara Maju Study Institute, stressed the importance of transparent and accountable electoral governance. The loan practices conducted by electoral organizers towards candidates and their supporters indicate the non-neutrality of the general election process held.
The presence of likes and dislikes, as well as the lack of neutrality in every decision made by electoral organizers, makes democracy flawed and only produces corrupt leaders who will harm the nation.
Contact person:
Bernhard Willem Pattinasarany (0852 8976 9112)
Anggi Putra Prayoga (+62 857-2034-6154)
Jeirry Sumampow (0812 9948 695)
Yusfitriyadi (0812 8900 723)
Attachment to the PPT Media Briefing for Forest Area Permit Sale can be downloaded at the link below:
The Press Release document can be downloaded at the link below: