Jakarta – The House of Representatives (DPR) officially passed the fourth revision to Law Number 4/2009 on Mineral and Coal Mining (Minerba Law) during the 13th Plenary Meeting of the Second Session Period at the DPR Building, Jakarta, Tuesday, February 18. One of the main points in this latest regulation is the provision of priority Mining Business License Areas (WIUP) for cooperatives, micro, small and medium enterprises (MSMEs), and religious mass organisations (CSOs).
Minister of Energy and Mineral Resources (MEMR) Bahlil Lahadalia said that this regulatory change aims to improve the governance of the mining sector, making it more inclusive and equitable. “The ratification of the Minerba Law is a strategic step to ensure that natural resources are managed more fairly, provide benefits to the wider community, and encourage domestic natural resource-based industrialisation,” Bahlil said.
According to Bahlil, the changes in this law include 20 revised articles and an additional eight new articles agreed upon between the government and the DPR.
Changes and Implications of the Minerba Law
In the latest Minerba Law, several main points form the basis of policy changes, including prioritising WIUP for Cooperatives, MSMEs, and religious organisations; legal certainty for business license holders, where WIUP and Special Mining Business License Areas (WIUPK) that have been confirmed will not undergo spatial and regional changes for legal permit holders; prioritisation of domestic coal needs (DMO); provision of funds for higher education, where part of the profits from the management of WIUP and WIUPK will be allocated to funding universities; and ease of licensing through the Online Single Submission (OSS) platform to speed up and simplify bureaucracy.
The law stipulates that the extension of contracts of work and coal mining concession agreements (PKP2B) can only be granted after a strict environmental audit.
Deputy Speaker of the House of Representatives, Adies Kadir, who chaired the plenary session, expressed his appreciation for the cooperation between the House and the government in formulating the amendments to the Mining Law. “We hope this regulation can provide business certainty, increase domestic added value, and ensure the welfare of the people from the mining sector,” said Adies.
However, a number of parties consider that implementing this policy will still face challenges, especially in the aspects of supervision and implementation in the field. Some observers highlighted that granting WIUP to cooperatives and MSMEs must be accompanied by a transparent selection mechanism so as not to be misused by irresponsible parties.
With the passing of the Minerba Law, the government is given a maximum of six months to finalise its implementing regulations. The government is also asked to ensure that this policy change does not hamper investment and can still encourage economic growth in the mining sector sustainably. (Hartatik)
Banner photo: Parilov/shutterstock.com
