House Ratifies Mining Bill; MSMEs and Cooperatives Cleared to Manage Mines

Tempo
18 Feb

TEMPO.COJakartaThe House of Representatives (DPR) has ratified the fourth amendment to Law Number 4 of 2009 concerning Mineral and Coal Mining or the Mining Bill (RUU Minerba), on today's plenary session on Tuesday, February 18, 2025. 

Minister of Energy and Mineral Resources Bahlil Lahadalia mentioned that this revision was made to provide a sense of justice.

"We have known that the management of mineral mining has been exclusively held by large entrepreneurs. It's the same old story," said Bahlil in a press conference after the plenary session. "The President's direction and the mandate of the law must be carried out evenly."

With the ratification of the Mining Bill, religious mass organizations, micro, small and medium enterprises (MSMEs), and cooperatives can manage mining permits (IUP).

Previously, the granting of IUP for religious mass organizations was also decided through Government Regulation (PP) Number 25 of 2024. "Now, MSMEs and cooperatives can obtain IUP on a priority scale. This means, it's not necessary to follow pure tenders," said Bahlil.

Regarding the IUP for religious mass organizations, the Mining Bill also provides wider opportunities. Because the quota for religious mass organizations is no longer limited to former areas of coal mining business work agreement (PKP2B) as regulated in PP 25.

"With the Mining Bill, quota for religious mass organizations is open outside the former PKP2B," said Bahlil. "It would be great for religious religious mass organizations who want and need it. For those who do not want it and do not need it, then don't."

Furthermore, Bahlil stated that the government will monitor the policy regarding the granting of IUP for religious mass organizations, MSMEs, and cooperatives. The Golkar Party politician said that the priority IUP given cannot be transferred in any way.

"Not buying, given, then sold again. In order to encourage new entrepreneurs to emerge from the regions," said Bahlil.

Editor's Choice: SOEs, Private Companies to Manage Mines for Universities' Profit

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