The Political-Business Nexus Behind Priority Mining Area Allocations (WIUPK) for Religious Organizations: An Analysis of Government Regulation Number 25 of 2024

Abstract

The allocation of Special Mining Business License Areas (WIUPK) to business entities owned by religious organizations under Government Regulation Number 25 of 2024 has generated debate regarding the interactions among state authority, political interests, civil society organizations, and business actors. This study aims to examine the political process underlying the formulation of Government Regulation Number 25 of 2024, particularly Article 83A, and to analyze the relationships among state actors, political elites, religious organizations, and business interests through the theoretical perspectives of state capture, the business-politics nexus, and civil society. This study employed a qualitative approach using a document analysis design. Data were collected from laws and regulations, official government documents, academic publications, institutional reports, and relevant media sources. The data were analyzed using the interactive model developed by Miles, Huberman, and Saldaña, supported by source and theoretical triangulation. The findings reveal that Government Regulation Number 25 of 2024 was formulated through an executive regulatory process that combined provisions granting priority access to WIUPK for religious organizations with other provisions benefiting large-scale mining license holders. The study also identifies patterns of interest exchange among state actors, political elites, religious organizations, and business interests that exhibit characteristics consistent with state capture, although it does not establish definitive evidence regarding the motives of the actors involved. This research highlights the importance of transparency, public participation, and stronger accountability mechanisms in the formulation of strategic natural resource policies.