Bahlil on Mining Permits for Mass Organisations After Constitutional Court Ruling: Nothing Annulled, No Problem

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has affirmed that the Constitutional Court’s ruling on the granting of Mining Business Permits (IUP) to cooperatives, mass organisations and universities will push the government to draw up implementing regulations in a more transparent and accountable manner.

Bahlil said the ruling also affirms that priority may still be given to cooperatives, but not through an immediate appointment mechanism.

“The Constitutional Court’s decision states that the granting of priority still exists. Appointment cannot be done arbitrarily; there must be a mechanism, there must be rules, which is why we will draw up implementing regulations in the form of a ministerial regulation or a ministerial decree,” Bahlil told journalists at the Presidential Palace complex in Central Jakarta on Monday, 20 July 2026.

Bahlil said the government will draft a ministerial regulation (Permen) or ministerial decree (Kepmen) as implementing rules to ensure the prioritisation process proceeds in line with good governance principles.

“It does not cancel the priority, but the governance must be improved so that the principles of transparency and accountability can truly be upheld,” he said.

According to him, only cooperatives that meet the requirements may receive priority to manage mining operations. One requirement is that the cooperative must be located in the area where the mine is situated.

Regarding mass organisations that have already obtained mining management permits, Bahlil stressed that the Constitutional Court’s ruling does not apply retroactively and therefore does not affect permits already in operation.

“No, there is none. It is not retroactive, and none of the articles under review have been struck down. Nothing at all, not a single one has been annulled, so there is no problem. It is simply being done to make things more transparent and accountable. That will be set out in the implementing regulations,” Bahlil said.

The Constitutional Court has officially ruled that the granting of Mining Business Permits (IUP) to religious mass organisations, cooperatives and universities must not be carried out through a direct appointment mechanism. (Ant)