Minister pushes greater local role in Indonesia's mining sector

Speaking at the 11th Regional Conference of the Golkar Party’s South Sumatra Regional Executive Board here on Sunday, Lahadalia said that many mining business permit (IUP) holders still have their headquarters in Jakarta, while the presence of companies in producing regions needs to be strengthened.

He cited South Sumatra, which has significant coal reserves, saying the province’s abundant natural resources should provide greater benefits for local communities.

To support this, the government enacted Law No. 2 of 2025, the fourth amendment to Law No. 4 of 2009 on Mineral and Coal Mining, to provide broader opportunities for local communities to manage mining resources.

Under the law, the government gives priority to micro, small, and medium enterprises (MSMEs) and cooperatives to participate in mining operations.

“We have formulated a policy for MSMEs and cooperatives. We are giving them priority so that people in the regions can become masters in their own homeland,” he said.

Lahadalia stressed that the management of natural resources should not benefit only certain groups but should instead provide broader opportunities for the public.

He therefore encouraged regional heads to propose mining areas that have not yet been granted mining business permits so they can receive priority for management in accordance with prevailing regulations.

“If there are mining areas that do not yet have an IUP, regional heads can submit proposals so we can give them priority, enabling local communities to play a greater role in regional development,” Lahadalia said.

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Translator: Ahmad, Kenzu