DPR Passes Revised Mineral and Coal Mining Law

Yustinus Paat
February 18, 2025 | 12:58 pm
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Coal gets loaded to a truck in Meureubo, West Aceh, on Jan. 28, 2025. (Antara Photo/Syifa Yulinnas)
Coal gets loaded to a truck in Meureubo, West Aceh, on Jan. 28, 2025. (Antara Photo/Syifa Yulinnas)

Jakarta. The House of Representatives (DPR) officially passed the revised Mineral and Coal Mining Law during a plenary session on Tuesday.

The session was attended by 311 of the 579 DPR members, along with key government officials, including Energy and Mineral Resources Minister Bahlil Lahadalia, Justice Minister Supratman Andi Agtas, and State Secretary Minister Prasetyo Hadi.

The attendees unanimously agreed to pass the revised law.

The revised bill includes four key provisions aimed at improving Indonesia’s mining sector. First, it allows businesses owned by social and religious organizations to manage mining concessions by granting Mining Business Permit Areas (WIUP).

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Universities will also benefit from mining operations, with management of the mines entrusted to state-owned enterprises (SOEs), regional government-owned enterprises, or private entities appointed by the government. These entities will be able to provide benefits to universities, such as research funding, laboratory development, and scholarships.

The government and DPR decided not to grant mining concessions directly to universities, following public concerns about the independence of educational institutions. Energy and Mineral Resources Minister Bahlil Lahadalia said the decision was made to preserve the autonomy of universities as educational bodies.

Second, the law strengthens and ensures the continuity of raw material supplies, particularly for SOEs involved in critical sectors that serve the public interest.

Third, it promotes the rapid development of downstream mining activities, viewed as a key driver of Indonesia’s national economy.

Lastly, the law aims to ensure equitable distribution and fairness in line with Indonesia's economic democracy, as outlined in Article 33 of the 1945 Constitution.

Bahlil emphasized that the goal of the revised law is to empower local communities around mining sites, rather than bringing in businesses from the capital, Jakarta.

The Golkar Party chairman stressed that micro, small, and medium enterprises (MSMEs) receiving mining concessions should be based in the mining areas, not from outside the region or Jakarta.

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