Indonesia's Energy Minister Says Only Cooperatives Near Mining Sites Eligible for Permits

October 9, 2025 | 12:37 pm

TEMPO.CO, Jakarta - Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia said the mining policy for cooperatives and micro, small, and medium enterprises (MSMEs) only applies to those located near mining sites. The policy, he said, does not affect MSMEs in Jakarta.

For example, he explained, if a mine is located in North Kalimantan, only cooperatives and MSMEs based in the region may take part in the mining operations. "Not in Jakarta," Bahlil said in the Presidential Palace Complex, Central Jakarta, on Wednesday, October 8, 2025.

The Golkar Party boss said these provisions will be laid out in a ministerial regulation concerning MSMEs, cooperatives, and religious organizations, which is currently being drafted.

The government is opening doors for cooperatives to manage mineral and coal mining operations. This policy is ruled under Government Regulation (PP) Number 39 of 2025 concerning the Second Amendment to PP Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

Minister of Cooperatives Ferry Juliantono previously said that cooperatives can now engage in mining activities, including artisanal mining. This step is a breakthrough to expand the role of cooperatives in managing natural resources that have long been dominated by large companies.

"With the issuance of said Government Regulation, cooperatives can now engage in and manage mining sectors such as minerals and coal," Ferry said in his official statement on Tuesday, October 7, 2025.

Several articles in PP 39 of 2025 bolster the role of cooperatives in the mining sector. For example, Article 26C rules for the administrative verification and cooperative membership to be carried out by the minister in charge of cooperative affairs. This verification is the basis for granting priority mining business permits (WIUP) to cooperatives.

Furthermore, Article 26E states that based on the verification results, the Minister of Energy and Mineral Resources can approve mining business permits for metal or coal minerals through the Online Single Submission (OSS) system. Meanwhile, Article 26F establishes that the maximum land area for WIUP that can be granted to cooperatives or small and medium enterprises (SMEs) is 2,500 hectares.

"This policy is expected to have a greater economic impact, especially for communities in areas with mining potential," Ferry said.

Eka Yudha Saputra and Riri Rahayningsih contributed to the writing of this article.

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