Bahlil Encourages Local Communities to Take a More Active Role in Mining Management

The Minister of Energy and Mineral Resources, Bahlil Lahadalia, is encouraging local communities to become more actively involved in the management of natural resources, specifically within the mining sector. The objective is to ensure that the benefits of natural wealth are felt directly by the populations residing in resource-producing regions.

Attending the XI Regional Consultative Meeting (Musda) of the Golkar Party for South Sumatra Province in Palembang on Sunday, 2 August 2026, Bahlil noted that many head offices for holders of Mining Business Licences (IUP) are currently based in Jakarta, whereas the presence of companies within the producing regions needs to be strengthened.

He cited South Sumatra as an example, noting its significant potential in the coal sector, and argued that such natural resource wealth must provide greater benefits to local communities. To this end, Law Number 2 of 2025—the fourth amendment to Law Number 4 of 2009 concerning Mineral and Coal Mining—aims to provide broader opportunities for local communities to manage mining potential.

The government is providing space and priority to micro, small, and medium enterprises (MSMEs) and cooperatives to participate in mining operations. “We are formulating policies for MSMEs and cooperatives. We are providing what is called priority, so that local people can become masters in their own land,” Buala Bahlil on Sunday.

He emphasised that the management of natural resources must not be enjoyed solely by specific groups but must offer wider opportunities to the public. Consequently, he advised regional heads that they may propose mining areas that do not yet have an IUP to receive management priority in accordance with applicable regulations. “If there is a mining area without an IUP, regional heads can submit a proposal so that we can grant priority, allowing local youths to participate as drivers of development,” he added.