Jakarta – The government is providing cooperatives with the opportunity to manage Mineral and Coal Mining Permit Areas (WIUP) through Government Regulation (PP) No. 39 of 2025.
“With the issuance of this Government Regulation, cooperatives can now engage in and manage the mining sector, such as minerals and coal,” said Ferry Juliantono, Minister of Cooperatives and SMEs, at a press conference on Tuesday, October 7.
According to Ferry, this new regulation provides an opportunity for cooperatives to play a greater role in the national economy — not only as a complement to micro and small businesses, but as direct players in strategic sectors.
This new regulation will change the landscape of natural resource management in Indonesia, which has been dominated by large corporations. Article 26F of the Government Regulation stipulates that the maximum area of mineral or coal WIUPs for cooperatives and small and medium-sized enterprises is 2,500 hectares.
“The permitted land area reaches 2,500 hectares. Hopefully, this policy will have a real economic impact on communities in areas with mining potential,” explained Ferry.
Meanwhile, administrative verification and cooperative membership are the sole authority of the Ministry of Cooperatives and SMEs, not the Ministry of Energy and Mineral Resources.
“This will be a new activity for cooperatives—from mine management to the potential for community oil wells,” said Ferry. He said the program would be part of the Merah Putih Village/Subdistrict Cooperative, as a tangible form of mutual assistance economics in the industrial era.
Great potential, but not without risk
A number of experts have expressed the importance of caution. The complexity of the mining world—from financing and environmental risks to social governance—tests cooperatives’ capacity to prove their capability.
Nailul Huda, Director of the Digital Economy Center of Economic and Law Studies (Celios), believes that this policy carries hidden risks. “It’s not just about mining. Cooperatives must be able to manage the social and environmental impacts of mining activities, which have been a major challenge even for large companies,” explained Huda.
He also warned of the potential for large corporations to abuse the cooperative scheme. “We need to ensure that this policy is not used as a back door for large corporations to continue controlling mines under the guise of cooperatives. Cooperatives must not become a ‘legal mask’,” he said.
In addition, Huda highlighted financing constraints as a significant obstacle. The high risk associated with the mining sector has made banks cautious about extending credit to cooperatives.
“Banks will definitely be sceptical. The capacity of cooperatives to manage mines has not been proven, while the capital requirements are large and high risk,” he said. (Hartatik)
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