ASIATODAY.ID, KENDARI – Commission XII of the Indonesian House of Representatives (DPR RI) has strongly criticized two major Chinese-backed mining companies, PT Virtue Dragon Nickel Industry (VDNI) and PT Obsidian Stainless Steel (OSS), for their minimal contribution to regional development and the welfare of local communities in Southeast Sulawesi.
During a working visit to Kendari on Friday, July 11, 2025, the Commission issued an ultimatum to the companies, demanding immediate settlement of long-overdue tax obligations amounting to billions of rupiah.
Syafruddin, a member of Commission XII, stated that the DPR had received numerous complaints from both the provincial government and local residents, especially regarding the companies’ lack of commitment to infrastructure development and corporate social responsibility (CSR).
“VDNI and OSS have yet to demonstrate real commitment to regional development. The public has also raised serious concerns over air and water pollution caused by nickel smelting operations,” said Syafruddin of the National Awakening Party (PKB).
In addition to economic and social contributions, the companies’ compliance with environmental regulations has come under scrutiny. Communities living near the industrial zones have reported worsening air and water pollution, which poses long-term risks to public health and the ecosystem.
Southeast Sulawesi Governor Andi Sumangerukka publicly expressed his frustration over several unresolved tax liabilities, which have persisted for years. These include: Surface Water Tax (including IDR 5.6 billion outside current legal appeals), Motor Vehicle Tax, and Fuel Tax.
“These unpaid taxes have caused significant losses to the regional budget, which should be allocated for public infrastructure and services,” the Governor asserted.
Rocky Candra, a legislator from the Gerindra Party and member of Commission XII, emphasized that the companies could no longer offer excuses for postponing payments.
“If major players like Freeport and Amman Mineral can comply with their fiscal duties, there’s no reason for VDNI and OSS to neglect theirs,” said Rocky.
Environmental Violations Under Investigation
The DPR also flagged serious environmental violations, citing community reports of pollution that indicate weak internal oversight and potential breaches of Law No. 32/2009 on Environmental Protection and Management.
To follow up, Commission XII has submitted an official report to the Ministry of Environment and Forestry (KLHK) and requested the Law Enforcement and Supervision (Gakkum) Team to conduct on-site verification and investigate potential manipulation of environmental impact reports.
“We must ensure that environmental compliance reports are not falsified, as this issue has been widely criticized by the public,” Rocky added.
One-Month Deadline Set by DPR
As a concrete step, Commission XII has given VDNI and PT OSS a one-month deadline to demonstrate good faith by settling their tax arrears and improving their environmental performance.
If there is no significant progress, the DPR will escalate the matter to the Mineral and Coal Working Committee (Panja Minerba) or push for the establishment of a Special Committee (Pansus) to ensure a thorough, transparent resolution.
“This is not just about tax numbers. It’s about public trust in businesses and the state’s commitment to upholding the law,” Rocky concluded. (AT Network)
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