Requirements of Mining Permits for SMEs

2 months ago 62

February 19, 2025 | 12:59 pm

TEMPO.CO, Jakarta - The government ensures the granting of mining permits for small and medium-sized enterprises (SMEs). However, Minister of Energy and Mineral Resources Bahlil Lahadalia said that SMEs eligible to manage must come from mining areas, not from Jakarta.

"(Involvement) of SMEs will be designed for regional SMEs. For example, (nickel mining) in North Maluku, SMEs eligible for (licenses) are not from Jakarta, but those in North Maluku," said Bahlil in a press conference after a plenary meeting of the House of Representatives Legislation Body (Baleg) at the Senayan, Jakarta, on Monday, February 17, 2025, as quoted from Antara.

Bahlil explained that granting mining permits to SMEs in the region aims to realize the aspirations of Article 33 paragraph (3) of the 1945 Constitution. The article states that the earth, water, and natural resources contained therein are controlled by the state and used for the prosperity of the people.

"Currently, almost all IUPs (mining business licenses), their offices are all in Jakarta. Now, we are returning it so that people in the regions are given a portion," said Bahlil.

The requirements for SMEs eligible to manage mines are SMEs with a capital of Rp10 billion. By following various applicable procedures for managing mining, Bahlil hopes that 1-2 years later, these business players can move up the ladder to become large companies.

"That's what SMEs want, for us to create big entrepreneurs from the regions. Why? To reduce inequality ratios," said Bahlil.

After the Bill on Mineral and Coal Mining (Minerba) was passed, Bahlil stated that the government would prepare derivative regulations containing criteria and provisions for which SMEs can hold mining permits.

"There are specifications (SMEs can manage mines). There are specifications. If not, then large companies will manage first. After all, there are capital limits in the law," said Bahlil.

The Baleg of the House of Representatives together with the government approved the Bill on the Fourth Amendment to Law Number 4 of 2009 concerning Minerba to be brought to a plenary session. There are several points covered, including State-Owned Enterprises (SOEs), Regional-Owned Enterprises (BUMDs), and private companies given Mining Business License areas (WIUP) for the benefit of universities.

Furthermore, the Minerba Bill also includes policies to increase the involvement of various parties, including cooperatives, SMEs, and business entities owned by community organizations (ormas). The Minerba Bill also aims to ensure the strengthening and certainty of the supply of raw materials effectively, efficiently, and sustainably, especially for SOEs engaged in businesses that concern the public interest.

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