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Analysis: Law revision clears path for universities, SMEs to mine
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University of Indonesia campus in Depok, West Java. (Wikimedia Commons/Ilham Kuniawan Gumilang)
T
he House of Representatives agreed to table the revision of the Coal and Mineral Mining Law as an initiative bill on Jan. 23, after a discussion in the Legislation Body (Baleg) which took place until midnight on the last day of the House recess. The revision is considered necessary to accommodate the Constitutional Court ruling that allows entities outside business players, such as higher education institutions and small and medium enterprises (SMEs), to engage in mining business.
During the final months of his term, former president Joko ‘’Jokowi’’ Widodo signed Government Regulation No. 25/2024 in July 2024, paving the way for religious-based mass organizations to hold mining concessions, especially coal, as a source of funding to cover its operations.
The policy has sparked criticism as an effort to silence religious groups, which should exercise a checks-and-balance mechanism against the government, especially when it comes to policies that harm society. Critics have also warned that religious-based organizations lack the expertise and experience in the mining industry, putting their mining businesses at risk of causing environmental damage and facing the problems of governance and sustainability.
The regulation prompted the House to amend the law with an aim to provide a stronger legal basis to entities other than the business sector to manage mining concessions. Nevertheless, the revision was initiated by the Baleg, instead of Commission XII overseeing energy and mining affairs, in a bid to accelerate the process. All the eight political party factions in the House, including the quasi-opposition Indonesian Democratic Party of Struggle (PDI-P), approved the draft revision of the Coal and Mineral Mining Law as an initiative bill. Based on the procedure, the House requires the President’s agreement to start the deliberation of the bill.
Chairman of the Baleg, Bob Hasan of President Prabowo Subianto’s Gerindra Party defends the amendment as opening the opportunities for institutions to improve education quality and standards through revenues from the mining concessions they will operate.
According to the draft amendment, universities must have a minimum accreditation of B to apply for mining business permits. However, many have criticized the swift formulation of the bill, which lacked transparency and public consultation. The legitimacy of the draft law is also in question because it was finalized during recess.
According to the Center for Energy and Mining Law Studies (PUSHEP) director Bisman Bhaktiar, the Constitutional Court ruling stated that there were no constitutional issues regarding the regulation of mass organizations in obtaining mining locations. Hence, the justification for the revision has become even more questionable.
