Minerba Law Valid, UMKM and Mass Organizations in Regions Can Get Mining Management Rights

JAKARTA, KOMPAS - The House of Representatives officially passed the Draft Law on the fourth amendment to Law Number 4 of 2009 concerning Mineral and Coal Mining in a plenary session. The revisions established include, among others, prioritizing mine management for small business operators and the right to collaborate with universities.

The plenary session was led by the Deputy Speaker of the House of Representatives (DPR), Adies Kadir, at the Parliament complex, Jakarta, on Tuesday (18/2/2025), lasting approximately 30 minutes since 10:00 AM WIB.

The House of Representatives passed the Draft Law on Minerals and Coal (Minerba) after hearing reports from the Deputy Chairman of the Legislative Body, Ahmad Doli Kurnia Tandjung, and the Minister of Energy and Mineral Resources, Bahlil Lahadalia.

"Regarding the Draft Law on the fourth amendment to Law Number 4 of 2009 concerning Mineral and Coal Mining, can it be approved to become a law?" said Adies.

"Agreed," replied the meeting members present.

Adies reported that eight factions expressed their stance to accept and approve the Mineral and Coal Mining Bill to be enacted into law. These factions include Golkar, Gerindra, PKB, Demokrat, PAN, Partai NasDem, and PDIP.

The ratification began with the drafting of the Mineral and Coal Mining Bill (RUU Minerba) as an initiative proposal by the House of Representatives (DPR) in the last week of January 2025. The DPR proposed at least changes to 14 articles which were then submitted to the President.

Subsequently, the government responded by creating as many as 256 problem inventory lists (DIM), which were then discussed in detail to refine the Mineral and Coal Mining Law (UU Minerba).

In his report, Bahlil said the government requested 20 articles be changed and 8 articles be added. "The changes or additions to the articles are mainly those that regulate substantial matters," he said.

Bahlil, when met by the media after the plenary session, explained that the ratification of the revised Minerba Bill into the Minerba Law this time emphasizes granting rights to the community to manage mines for the common welfare, in accordance with the mandate of Article 33 of the 1945 Constitution (UUD).

"Now, MSMEs and cooperatives can obtain IUP (Mining Business Permit) with priority scale, meaning they do not have to follow a pure tender. Likewise with religious community organizations. We know that the role of religious community organizations since before Indonesia's independence in maintaining this independence has been extraordinary," he said.

According to Bahlil, the group has the right to have space to manage mining areas that are no longer limited to the former Coal Mining Business Work Agreement (PKP2B) area.

The legislation also goes beyond Government Regulation (PP) No. 25 of 2024, religious mass organizations are only given WIUP in former PKP2B, such as those belonging to PT Arutmin Indonesia, PT Kendilo Coal Indonesia, PT Kaltim Prima Coal, PT Adaro Energy Tbk, PT Multi Harapan Utama (MAU), and PT Kideco Jaya Agung.

With this new Minerba Law, Bahlil also emphasized the government's role in resolving disputes over an IUP area so that it can still be used for the welfare of the community. "So, it is not controlled by certain companies, but is managed as well as possible for the welfare of the people," said the General Chairperson of the Golongan Karya Party.

Furthermore, regarding the DPR's proposal on mining management by universities, the current Minerba Law does not regulate it, as proposed by the government. The Minerba Law mandates BUMN, BUMD, or private mining managers who will be appointed by the government to provide attention to universities in the regions or those in need.

This attention can be in the form of permission from the university to conduct research, carry out work experience, or obtain scholarships for students in need.

"For example, in Papua. There is Uncen. Maybe our research can be done through Freeport. At the university, we can encourage companies to have space so that these friends can participate. Likewise on campuses in areas where there are mining areas," said Bahlil.

Regarding the criteria and technicalities of the distribution of rights, Bahlil said, it will be further regulated through Government Regulations to related Granting Regulations. Further regulations regarding the priority of mining area management by MSMEs, cooperatives, and mass organizations will also be determined in the derivative regulations of the Minerba Law.

Responding to this, Researcher of the Center for Energy and Mining Law Studies (PUSHEP) Akmaluddin Rachim, when contacted by Kompas, admitted that he still questioned the urgency of the government in providing space for public participation in the management of mining areas. Even the controversy over the regulation, according to him, was covered up by the government by proposing universities as priority subjects for mining management.

According to him, mining management needs to consider the standard capacity of the organization or corporate governance agency to qualified resources. This is because mining activities require proper research, large capital, and environmental and social risk management capabilities.

"Do mass organizations have a capable business entity in mining management that requires a number of strong indicators, both in terms of funding aspects, HR safety, heavy equipment technology, and so on. Good mining principle parameters must be considered. If not met, mining management can be bad and damage the environment," he said.

On the other hand, he assessed that the government's plan to divide mining area management space to the community could prevent large companies from continuing operational contracts in previous work areas in former PKP2B areas.

However, if the government also allows MSMEs, cooperatives, and mass organizations to manage outside the former PKP2B area, Akmaludiin assessed that this would become a new problem after the presence of the PP which allows mining management by religious mass organizations.

"Of course it is problematic, because it has to deal with spatial and regional planning. An in-depth and strong study needs to be conducted so as not to damage the diversity in the region," said the Lecturer at the Faculty of Law, Prof. Dr. HAMKA Muhammadiyah University (UHAMKA).