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.
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