The Indonesian parliament has agreed to revise Law Number 4 of 2009 on Mineral and Coal Mining (Minerba) to foster the growth of domestic mineral processing industries.
The amendment aims to ensure ore supply security and provide regulated access to mining for small businesses and religious groups.
During the 11th Plenary Meeting in January 2025, the House of Representatives (DPR) agreed to make the fourth amendment to Law Number 4.
The draft bill was approved by the DPR and the government and has moved forward to the plenary session, where it will undergo final approval before becoming law.
This legislative change is expected to reshape the landscape of the mining sector in Indonesia, which is a leading exporter of coal and a vital source of metals such as nickel, tin, copper and bauxite, reported Reuters.
Energy and Mineral Resources Minister Bahlil Lahadalia told parliament after a plenary vote that passed the bill: “This amendment is in line with the government’s aspiration to reform governance of mineral and coal mining.”
The revised law grants priority access to mining concessions for companies that plan to establish processing facilities in Indonesia. This is contingent upon the size of their investment, the potential for value addition and the creation of job opportunities.
For the first time, this privilege extends beyond state-owned companies to include religious groups operating business units and small to medium-sized businesses.
Historically, universities were also among those granted priority access. However, the amendment has shifted this focus, prioritising certain government-controlled or private businesses to manage mining areas for the universities’ benefit, such as funding research and scholarships.
This legislative update also addresses a 2021 constitutional court order that mandated the revision of several articles within the existing mining law, which were deemed unconstitutional.
The amendment is a strategic move by Indonesia to capitalise on its rich mineral resources and to stimulate the growth of its domestic metals sector.
