Recently, the Forest and Finance Institute, a research institute and environmental rescue organization released a report on the importance of banks in financing monoculture plantation and mining companies that cause environmental destruction such as forest destruction, the elimination of biodiversity and environmental ecosystems.
The report entitled “Bank on Biodersity Collapse” among others reports the amount of investment funding support from several State-Owned Enterprises (BUMN) Banks. In fact, the positions of these state-owned banks are in the top 10 in Southeast Asia. For example, Bank Mandiri in the top, then there are Bank BNI and Bank BRI.
According to the report, from 2018 to June 2024,Bank Mandiri has distributed credit to environmentally destructive companies amounting to US$ 5.6 billions, BRI Bank amounting to US$ 5.1 billions, and BNI Bank amounting to US$ 3.8 billions.
The actions of these state-owned banks have clearly violated the Constitution. The mission of state-owned banks, which should carry out the function of improving people’s welfare, has been softened. These banks benefit companies owned by capitalist conglomerates and are the main supporters of environmental damage and of course welfare problems in mining and plantation areas.
Need to be Democratized
The serious deviation of the function of these state-owned banks must of course be returned to their function immediately. Otherwise, it will actually damage the environment and people’s lives. The Indonesian people as the legitimate owners of state-owned companies must take action to stop this policy.
Not only that, so far, state-owned banks must be democratized by distributing their shares to the Indonesian people so that they can be directly controlled by the people.
This is important so that policies that damage the interests of the community and the environment do not occur.
State-owned banks, which according to the Constitution should still legally belong to the people. Because according to the 1945 Constitution, Article 1 paragraph 2, it is clear that the power (authority) of the state is in the hands of the people. Not in the hands of the President, let alone the ministers. Moreover, it is clearly and firmly stated in Article 33 of the 1945 Constitution that our economic system is economic democracy. An economic system that places power over economic resources in the hands of the people.
So far, the power of the Indonesian people over all BUMNs and including BUMN banks has been sabotaged by the Government (President cq. Minister of BUMN). The people have only been given the status of “ownership as if it will”. So now is the time for us to demand democratization of BUMNs by distributing shares to the people. The axiom is clear, what we don’t have we can’t control.
The current value of BUMN assets is approximately 10,300 trillion rupiahs. And if we do not immediately democratize, it is possible that the transfer of elite wealth will soon disappear through efforts to dilute shares and even create a collapse scenario.
So far, the government, in violation of the Constitution, has committed serious violations by implementing a mechanism for handing over (imbreng) BUMN assets to companies. We must stop this.
It is time for the Indonesian people to realize this before it is too late. We must demand that all BUMNs democratize and distribute their shares to all Indonesian people.
By: Suroto Chairman of National Association of Socio-Economic Cadres (i.e AKSES), Jakarta, December 8, 2024
