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Jakarta Post

Mining Law revision to allow universities to receive mineral concessions

A proposed revision to the 2009 Mining Law suggests that higher education institutions and local small and medium enterprises (SMEs) may be granted licenses to manage mining operations.

News Desk (The Jakarta Post)
Jakarta
Tue, January 21, 2025

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Mining Law revision to allow universities to receive mineral concessions Major operation: Heavy machinery operates in a coal mine at Sumber Batu village, West Aceh regency, Aceh, on May 24, 2024. (Antara/Syifa Yulinnas)

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proposed revision to the Mining Law includes a plan to grant higher education institutions with mineral and coal mining concessions, after policymakers previously granted such permits for business entities backed by religious groups.

The proposal emerged during the House of Representatives Legislation Body (Baleg) for deliberating a revision to Law No. 4/2009 on minerals and coal in Jakarta on Monday.

“There’s a need to prioritize religious organizations in managing mining operations in the new law, as well as higher education institutions,” Baleg chair Bob Hasan of the Gerindra Party said on Monday, as reported by kompas.com.

He added that the Baleg leaders had assigned an expert team to prepare a draft for the law revision which is expected to include, among other issues, the disbursement of mining concessions for religious organizations and educational institutions.

A draft for the revision presented during Monday’s meeting by an expert team showed a proposed Article 51A, which stipulates that special mining license areas (WIUPK) can be granted to higher education institutions. The universities must have at least a B-level accreditation to qualify for a WIUPK.

Aside from religious organizations and educational institutions, Bob mentioned a plan to grant local small and medium enterprises with mining concessions.

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During the meeting, the proposed draft drew criticism from several Baleg members, such as the Indonesian Democratic Party of Struggle (PDI-P) lawmaker Putra Nababan, who questioned the academic manuscript of the bill.

He claimed to have received a 78-page draft of the proposed revision only half an hour before Monday's meeting. Putra also raised concerns about the lack of public participation and engagement from related parties in the mineral and coal sector.

“How can we justify bypassing participation from such a large number of stakeholders in this sector?” the lawmaker questioned at Monday’s meeting.

Baleg held a series of meetings on Monday, when the House was still in an official recess period, to deliberate a revision to the 2009 Mining Law. The meeting was adjourned at midnight, after the legislation body’s members agreed to approve the proposed revision as a House initiative. (kuk)

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