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New Mining Law paves legal way for concessions for religious groups
The revision of the 2009 Mining Law passed by the House also allows universities to work with state-owned or private entities that own concessions for research and internship access as well as scholarships for students funded by mining revenue.
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Piles of coal are seen on barges on Aug. 16, 2022, in Samarinda, East Kalimantan. (AFP/Adek Berry)
T
he House of Representatives has passed a controversial revision of the 2009 Mining Law that now officially allows the government to grant mining concessions to mass organizations as well as small and medium enterprises (SMEs).
The new law, however, stops short of allowing universities to manage mining concessions following public opposition to the plan.
The legislature passed the revision to Law No. 4/2009 on mineral and coal mining during a plenary session on Tuesday, led by deputy speaker Adies Kadir of the Golkar Party. All eight House factions approved the bill.
Also attending the session were Energy and Mineral Resources Minister Bahlil Lahadalia, Law Minister Supratman Andi Agtas and State Secretary Prasetyo Hadi as representatives of President Prabowo Subianto’s administration.
Between Feb. 12 and 15, the House’s Legislation Body (Baleg) held closed-door meetings with Commission II overseeing home affairs and government representatives to deliberate the bill. They eventually agreed during a meeting on Monday to have the bill passed into law at Tuesday’s plenary session.
Among points included in the law amendment is the establishment of a legal avenue for the government to grant mining permits (IUPs) to religion-based mass organizations and SMEs.
The revision also mandates a new scheme to grant IUPs through a prioritized auction for certain organizations to “ensure fair distribution” of opportunities to mine coal and minerals, according to Supratman. Under the previous law, permits could only be granted to parties that won an auction.
