House passes revised mining law to strengthen governance, boost industrialization

Published on 18/02/2025 GMT+7 Reading time 2 minutes

The House of Representatives (DPR) passed the Fourth Amendment to Law No. 4/2009 on Mineral and Coal Mining (Minerba) into law during the 13th plenary session of the second legislative hearing period on Tuesday, February 18, 2025.

 

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia welcomed the move, emphasizing that the law aligns with the government's vision to enhance mining governance, drive industrialization, and ensure equitable benefits for all Indonesians.

 

Key amendments and additions:

 

1.                  Implementation of Constitutional Court rulings regarding mining rights and

 contract extensions.

2.                  Stability in mining areas (WIUP, WIUPK, WPR) to prevent zoning disruptions for

 existing permit holders.

3.                  Domestic Market Obligation (DMO) prioritizing coal supply for domestic needs

 before exports.

4.                  Priority allocation of mining areas to cooperatives, SMEs, and religious

organizations.

5.           Mandatory financial contributions from mining profits to fund universities.

6.           Strengthened support for downstream processing and industrialization.

7.           Government-assigned research and exploration projects to state and private

 institutions.

8.                  Digitalized business licensing through the Online Single Submission (OSS) 

system.

9.           Environmental audits as a requirement for contract renewals.

10.        Repossession of overlapping mining areas by the state.

11.        Enhanced community development and protection of indigenous rights.

12.        A six-month deadline for the government to finalize implementing regulations.

 

Bahlil stressed that the new law would improve governance, ensure legal certainty, and support domestic value-added industries. 

 

“Additionally, it is expected to create jobs, increase state revenue, and promote sustainable national development,“ he said as quoted in a statement on Wednesday, February 18, 2025.

 

Deputy House Speaker Adies Kadir, who presided over the session, confirmed the law’s passage after unanimous approval from all parliamentary factions. He also acknowledged the government's role in finalizing the bill.

 

“This law marks a significant step in optimizing our natural resources for the nation's progress,” Kadir said.

Tag

Already have an account? Sign In

  • Freemium

    Start reading
  • Monthly Subscription
    30% OFF

    $26.03 $37.19/Month


    Cancel anytime

    This offer is open to all new subscribers!

    Subscribe now
  • Yearly Subscription
    33% OFF

    $228.13 $340.5/Year


    Cancel anytime

    This offer is open to all new subscribers!

    Subscribe now

Set up email notifications for these topics

Read Also

How can we help you?