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February 20, 2025 | 01:08 pm
TEMPO.CO, Jakarta - The Indonesian government frames the approval of the revised Law No. 4 of 2009 on Mineral and Coal Mining (Minerba Law) as an effort to restore the essence of Article 33 of the 1945 Constitution. Minister of Energy and Mineral Resources Bahlil Lahadalia described the regulation as a “constitutional jihad” to ensure that natural resource management fully serves the people's interests.
"This is a constitutional jihad to restore the spirit, meaning, substance, and purpose of Article 33 of the 1945 Constitution, where all of the country's wealth—whether on land, at sea, or in the air—must be controlled by the state and utilized for the greatest welfare of the people," Bahlil stated at the Indonesia Economic Summit in Jakarta on Wednesday, February 19.
One of the significant changes in this revision is the mechanism for granting mining business permit areas (WIUP). Previously, WIUPs were granted through auctions, but the government now prioritizes community-based religious organizations, regional government-owned enterprises (ROEs), state-owned enterprises (SOEs), micro, small, and medium enterprises (MSMEs), and cooperatives.
"Now, not everything has to be tendered, but there is a priority allocation. This priority will be given to religious organizations, ROEs, SOEs, MSMEs, and cooperatives," he said.
He explained that this measure aims to provide local communities with the opportunity to manage the natural resources in their regions, in line with President Prabowo Subianto’s directive. Bahlil also emphasized that existing mining operations can continue, but any remaining portions should be allocated to local communities.
“This is so that people in Jakarta and those in other parts of the country can advance together, become stronger, and prevent our Gini ratio from widening too much. We need strong new entrepreneurs. This is what we will push for as part of economic equalization,” Bahlil said.
The government claims that the revised Mining Law will emphasize the importance of downstream processing in the mining sector to increase the added value of mineral resources before export. "We should not just extract and sell raw materials. We must create added value," Bahlil said.
Meanwhile, Muhammad Isnur, chairman of the Indonesian Legal Aid Foundation (YLBHI), strongly opposed the revision, arguing that it enables land grabs, environmental destruction, and the co-optation of academic institutions.
"The ratification of the revised Mining Law was rushed and lacked adequate public participation. The discussion process was non-transparent and lacked in-depth studies on social, environmental, and academic impacts. This further reflects a government that prioritizes business interests over the interests of the people," he said in an official statement on Thursday, February 20.
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