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March 12, 2025 | 04:27 pm
TEMPO.CO, Jakarta - Minister of Cooperatives Budi Arie Setiadi announced that Red and White Village Cooperatives, established by President Prabowo Subianto, will be permitted to manage mining operations in areas where mining sites exist. This provision is included in the recently enacted revision of the Mineral and Coal Mining Law, passed in mid-February 2025.
"Villagers should enjoy all the resources available in their village," Budi Arie said at a press conference held at his office in Jakarta on Tuesday, March 11, 2025, as reported by Antara.
In a press conference on Thursday, March 6, 2025, Budi Arie clarified that not all cooperatives will be eligible for mining management. A selection process will be implemented to prevent the involvement of fictitious cooperatives that lack clear operational foundations or are established solely for specific purposes that contradict cooperative principles.
When asked about the significant capital required for cooperatives to manage mines, Budi Arie explained that cooperatives can collaborate with other cooperatives or entities, including State-Owned Enterprises (SOEs) and private companies, through multi-party cooperative schemes.
The government has also ensured that Micro, Small, and Medium Enterprises (MSMEs) will be granted permits to manage mines. However, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia emphasized that only MSMEs located within mining regions will be eligible, excluding those from Jakarta.
"[The involvement of] MSMEs will be designed for the regions. For example, [commodity mines] such as nickel in North Maluku, permitted MSMEs are not from Jakarta, but are from North Maluku," Bahlil said at a press conference following a plenary meeting of the House of Representatives Legislative Body at Senayan, Jakarta, on Monday, February 17, 2025.
Bahlil explained that granting mining management permits to regional MSMEs aims to fulfill the aspirations of Article 33 paragraph (3) of the 1945 Constitution. This article stipulates that the earth, water, and natural resources within it are controlled by the state and used for the welfare of the people.
"Now, almost all Mining Business Licenses (IUP) have offices in Jakarta. Well, we are returning it so that people in the regions get a portion," Bahlil added.
Regarding the criteria for MSMEs to receive mining management permits, Bahlil mentioned that the business must have a capital of Rp10 billion. He expressed hope that, through adherence to various procedures and applicable mechanisms, these MSMEs could transition into large companies within one to two years.
"The goal is to produce large-scale entrepreneurs in the regions. Why? To reduce inequality ratios," Bahlil remarked.
Following the enactment of the Bill on Mineral and Coal Mining No. 4 of 2009 into law, Bahlil stated that the government would formulate derivative regulations that specify the requirements and provisions for eligible MSMEs to manage mines.
"There are specifications [of MSMEs being able to manage mines]. Otherwise, well, large companies will be managing it first. There are also limitations related to the capital based on the law," Bahlil concluded.
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