Minister Bahlil prioritises RKAB approvals for MSME miners
The Minister of Energy and Mineral Resources (ESDM), Bahlateral Lahadalia, has stated that he is prioritising the approval of Work Plans and Budgets (RKAB) for mining companies with Micro, Small, and Medium Enterprise (MSME) status.
“If I were asked to choose between large entrepreneurs or MSMEs, I care for large entrepreneurs, but if I am faced with a choice, I will prioritise MSMEs,” Bahlil said during a Directorate General of Mineral and Coal Blood Donation event held in Jakarta on Monday.
Bahlil reminded that MSMEs currently have the opportunity to engage in mining activities. He revealed that several miners with MSME status have applied for production quotas ranging from 200,000 tonnes and 700,000 tonnes up to 1 million tonnes.
When weighing the approval of an RKAB for a single large company with a production plan equivalent to the accumulated production of several MSMEs, Bahlil expressed his preference for granting approval to the MSMEs.
“Yes, I would rather have many people living than one person in power,” Bahlil remarked.
He further explained that this step is a form of government support to act as a balancer between MSMEs and large corporations, especially since the contribution of MSMEs to the Indonesian economy exceeds 60 per cent.
“And for these MSMEs, if anything happens, their wealth is never taken abroad. During the 1998 economic crisis, was it large companies that served as the buffer for our national economic defence? No. It was the MSMEs (that served as the buffer),” said Bahlil.
Therefore, Bahlil stated that the focus of development should be on lower-middle-class entrepreneurs rather than upper-middle-class ones.
“We must not leave the lower-middle class to compete alone with the giants. Even if a chicken grew teeth, it would still struggle to develop. That is where the presence of the state is needed to maintain balance,” he added.
Law Number 2 of 2025 regarding the Fourth Amendment to Law Number 4 of 2009 concerning Mineral and Coal Mining opens wider opportunities for local communities to manage mining potential. The government is providing space and priority for micro, small, and medium enterprises (MSMEs) as well as cooperatives to participate in the management of mining businesses.