Indonesian Political, Business & Finance News

Bahlil Prepares Major Regulatory Reform Breakthrough for 2027

| Source: CNBC Translated from Indonesian | Energy
Bahlil Prepares Major Regulatory Reform Breakthrough for 2027
Image: CNBC

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that the government is preparing a more targeted regulatory reform for the energy and mineral resources sector by 2027. This step represents the peak stage of reorganising the governance of the mining sector, which has been initiated since 2025.

While not explaining the specific details of the upcoming regulatory reforms, Bahlil explained that the regulatory restructuring within the Ministry of ESDM has been designed gradually through a three-year roadmap. The government laid the foundation for regulatory reform in 202<0xA0>5, followed by a phase of enforcement and the management of Work Plans and Budget Estimates (RKAB) in 2026, before finally reaching full maturity in 2027.

“Yes, this is only two years in. In 2025, we are re-establishing and conducting regulatory reform. 2026 will be the follow-up to that regulatory reform. Then in 2027, we will further mature it and make it sharper. This is to ensure that the dignity of the state and the dignity of the ESDM Ministry are maintained as the ministry reaches its 81st anniversary,” Bahlil said during his speech at a blood donation event for the 81st Mining Anniversary at Balai Sudirman, Jakarta.

The impact of these measures is already visible in the regulation of supply and demand for mining commodities, ensuring that national nickel and coal prices are no longer controlled by external parties or certain unscrupulous individuals. As a result, non-tax state revenue (PNBP) from the mining sector has seen an increase exceeding the 2025 achievements, even though coal production levels have not been excessively pushed.

“Nickel prices are no longer being manipulated freely by certain parties. This is our true objective. Reports from the Director General of Mineral and Coal (Minerba) to me indicate that coal production is not as high as in 2025, yet the PNBP is higher compared to 2025. This means we want production to be controlled, but the most important thing is the state’s revenue,” he explained.

This regulatory breakthrough is also aimed at providing protection and equitable opportunities for Micro, Small, and Medium Enterprises (MSMEs), which contribute 61% to the national GDP. Bahlil emphasised that resistance to changing regulations is natural, but rules must be enforced to uphold the dignity of the state.

“Whenever there is a change in regulation, there will inevitably be those who are dissatisfied; that is normal. We do not live to please everyone… But I demand that the rules be enforced and the dignity of the state must be upheld,” he concluded.

View JSON | Print