MP Laments Private Sector Reaps Greater Profits from Indonesia's Natural Resources
Jakarta, CNBC Indonesia – Yulian Gunhar, a member of Commission XII of the House of Representatives (DPR RI), has stated that the management of Indonesia’s natural resources does not yet fully reflect the mandate of Article 33 of the 1945 Constitution, namely that natural resources should be used for the greatest prosperity of the people.
This, he assessed, is due to the considerable dominance of private parties in managing the country’s natural resources.
He highlighted the state’s less-than-optimal role in ensuring public prosperity, arguing that the founding spirit behind the Indonesian Mining Industry Holding, MIND ID, has not been fully reflected in its implementation on the ground.
Gunhar explained that the state mining holding was established from the outset to transform mineral management from mere exploitation into strengthening national industry capable of creating added value, employment, and state revenue.
However, he judged that this vision has yet to materialise in tangible contributions to the state, whether through taxes, royalties, dividends, or job creation.
“That the state controls natural resources, processes them itself, turns them into industry, creates added value, with the ultimate aim being the prosperity of the people,” Gunhar said during a hearing (RDP) of Commission XII of the DPR RI in Jakarta on Tuesday (15/9/2026).
According to him, current conditions show that natural resource management still faces challenges because the state’s role remains weaker than that of private parties.
This situation, he said, serves as a reminder that natural wealth must be controlled by the state and used for the greatest prosperity of the people, as mandated by the constitution.
“It’s a disheartening sight. It turns out the private sector is reaping more profit from our natural resources,” he said.
Gunhar therefore urged a deeper evaluation of each mining industry entity, to be accompanied by stronger oversight functions and policy support so that the aims behind MIND ID’s establishment can be achieved optimally.
“The goal of prosperity for the people, as mandated by Article 33, has not yet been fully realised,” he stressed.
Nevertheless, he affirmed that he would continue to support MIND ID as a strategic partner in carrying out the mandate of Article 33 of the 1945 Constitution. Gunhar also asked that the private sector’s share of involvement be cut back, while encouraging the state to harness natural wealth independently.
“All of this natural wealth we must empower for prosperity. As for the private sector’s sizeable percentage, enough — cut it back first. What is their contribution? Paying taxes, non-tax state revenue? We are the state, we have the capital,” he concluded.