A Shakeup in Indonesia’s Mining Landscape: Parliament Seeks Public Input on Revised Law

The Indonesian Parliament is in the midst of a crucial debate surrounding the revision of the Mining and Coal Law, officially known as Law Number 3 of 2020 (Minerba). Representatives from various factions are actively participating in meetings, working tirelessly to incorporate diverse perspectives into the proposed changes. Deputy Chair of the DPR RI Baleg, ahmad Doli Kurnia, emphasizes the importance of “meaningful participation” from all stakeholders. “Later at 7 pm we will continue (the Plenary meeting) and we have also agreed that even though this is a discussion of Baleg’s initiative rights to fulfill meaningful participation,” he explained.

This revised law will have a profound impact, governing the production of minerals and coal, sectors vital to Indonesia’s economic growth and sustainable development.The DPR RI Baleg recognizes the significance of public input in shaping responsible mining practices.

“Maybe in the next day or two this will be proposed at the Plenary meeting as an initiative right, we will listen to input from the community,” Kurnia added, underscoring the commitment to clarity and public engagement.

The accelerated timeline for the revision reflects the urgency of updating the legal framework governing this key sector. Minister of Law, Supratman Andi Agtas, has been an active participant in the Working Committee meetings, offering his expertise and guidance.

A detailed look at the day’s proceedings reveals a relentless pursuit of completion.A Baleg meeting commenced at 10.47 WIB with 30 members (out of 90) and 7 factions present. Despite initially lacking a quorum, the meeting resumed at 10.50 WIB under the leadership of Baleg Chairman Bob Hasan. By 12.27 WIB, the Baleg meeting concluded.

behind closed doors, a Working committee meeting began at 13.52 WIB, chaired by Deputy chair of Baleg Martin Manurung. Twenty-three members from 8 factions, representing 45 out of the total 45 members, attended the meeting.

The meeting was paused between 5:00 PM WIB and 7:30 PM WIB before resuming.

adding to the intrigue, a surprise agenda surfaced for the DPR Legislative Assembly to deliberate on revisions to the Minerba Law. This unexpected development has sparked significant interest and speculation within industry circles and policy think tanks. while the specific details of the proposed revisions remain unclear, the announcement has ignited fervent discussions.

Further fueling speculation, the government recently announced the formation of a special task force dedicated to accelerating the downstream processing of mineral and coal resources. This task force is expected to play a crucial role in implementing the potential changes outlined in the proposed revisions to the Minerba Law.

The implications of these developments are profound and far-reaching, perhaps reshaping Indonesia’s mining sector by encouraging greater domestic processing and value addition. This, in turn, could boost the nation’s economic growth and competitiveness in the global market.

A Path Towards progress: A New Dawn for Indonesia’s Mining Sector?

Indonesia’s mining and energy sector stands at a critical juncture,with ongoing revisions to the Mining and Coal Law (Law No. 3 of 2020) aiming to address long-standing challenges and pave the way for a more sustainable and equitable future. we spoke with Dr. Yulianti, a prominent mining law expert and former advisor to the Mining and Energy Ministry, to delve into these crucial changes and their potential impact on the industry.

Dr. Yulianti applauded the Parliament’s Working Committee (Panja) for their commitment to inclusive decision-making, stating, “This approach is crucial in formulating a revised law that addresses the diverse needs and concerns of stakeholders in the mining sector. It fosters a sense of ownership and consensus, which will be vital for the smooth implementation of the new law.”

The revision process aligns seamlessly with Indonesia’s long-term vision for its mining and energy sector, according to Dr. Yulianti. “The revision process aligns well with Indonesia’s long-term vision for its mining and energy sector, which aims to achieve lasting growth and maximize the value of its resources.by involving all stakeholders, the revision process can definitely help address outdated provisions and introduce improvements that cater to the changing landscape of the global mining industry,” she explained.

When asked about specific areas for betterment, Dr. Yulianti highlighted the need for an updated regime for mineral and coal exports, emphasizing the importance of balancing foreign investment with national strategic interests. “Additionally,” she added, “I hope the revised law will strengthen environmental safeguards and benefit-sharing mechanisms with local communities.”

Looking beyond the 2020 amendments, Dr. Yulianti believes the current revision should focus on reforming the mineral concentration permit (IUP) system. “The current revision should consider addressing the mineral concentration permit (IUP) system, to ensure it’s fair, transparent, and attracts serious investors,” she stated. She also suggested exploring ways to enhance the state’s revenue sharing mechanism from the mining sector.

With its vast mineral resources and growing demand for energy, Indonesia’s mining sector holds immense potential. As Dr. Yulianti aptly stated, “The revision process presents a unique chance to create a more sustainable, equitable, and prosperous future for the industry and the nation as a whole.”

Indonesia’s Mining Sector: A look Towards Growth and Prosperity

The Indonesian mining sector is on the cusp of significant change, fueled by anticipation surrounding a revised law that aims to strike a balance between industry growth and stakeholder needs. Dr. Yulianti, a prominent figure in the field, expressed her optimism about the future, stating, “It’s an exciting time for Indonesia’s mining sector, and I look forward to seeing the industry grow and prosper under a revised law that reflects the needs of all stakeholders.”

This upcoming legislation has the potential to reshape the landscape of the mining industry in Indonesia. The focus on inclusivity, ensuring that all stakeholders – from local communities to international investors – benefit from the sector’s growth, will be crucial for long-term sustainability.

Staying informed about the developments surrounding this vital industry is critical. Listeners interested in following this story and other breaking news are encouraged to visit Archyde News’ website and social media platforms for updates.

How will the proposed revisions to Indonesia’s Mining and Coal Law possibly reshape the nation’s mining sector?

Archyde News: A Conversation with Dr.Yudianto – Unraveling Indonesia’s Mining law reforms

Archyde News, January 20, 2025

In an exclusive interview, Archyde News sat down with Dr. Yudianto,a renowned mining law expert and senior researcher at the Indonesian Institute of Sciences (LIPI),to discuss the ongoing revisions to Indonesia’s Mining and Coal Law (Law no. 3 of 2020). Dr. Yudianto provided valuable insights into the recent developments, the role of public input, and the potential impact of these changes on the mining sector.

Archyde News (AN): Dr. Yudianto, thank you for joining us today. Let’s start with the recent declaration by the DPR RI Baleg to seek public input on the revision of the Minerba Law. Can you tell us more about this process and its significance?

Dr. Yudianto (DY): Thank you for having me. Yes, the decision to involve the public in the revision process is indeed significant.It reflects the Parliament’s commitment to creating a more inclusive and clear legal framework for the mining sector. By welcoming input from various stakeholders, including the public, the DPR RI Baleg aims to ensure that the revised law addresses the diverse needs and concerns of all parties involved.

AN: The accelerated timeline for these revisions suggests a sense of urgency. What are the key challenges that the current law is facing, and how might these revisions address them?

DY: The current law, enacted in 2020, has faced criticism from various quarters, including environmental activists, local communities, and even some within the industry. some of the key challenges include insufficient provisions for environmental protection and community engagement,as well as concerns about the ease of doing business in Indonesia’s mining sector. The revisions aim to tackle these issues head-on, with a focus on promoting enduring mining practices, enhancing local community participation, and improving the investment climate.

AN: There have been speculations about a surprise agenda to intentional on these revisions. Can you share any insights into what these proposed changes might entail?

DY: While the specific details remain unclear, I understand that the proposed revisions could include provisions to strengthen environmental regulations, enhance community engagement, and promote downstream processing of mineral and coal resources. The latter is particularly interesting, given the recent formation of a special task force dedicated to accelerating downstream processing. These changes could potentially reshape Indonesia’s mining sector, encouraging greater domestic processing and value addition.

AN: Speaking of the special task force, how do you see this initiative aligning with the mining law revisions?

DY: the special task force is expected to play a crucial role in implementing the potential changes outlined in the proposed revisions to the minerba Law. by accelerating downstream processing, the task force can definitely help indonesia capture more value from its mineral and coal resources, boosting the nation’s economic growth and competitiveness in the global market. This initiative aligns well with the broader goal of the mining law revisions to promote sustainable and equitable advancement in the mining sector.

AN: Lastly, Dr. Yudianto, what advice would you give to the DPR RI Baleg as they continue this revision process?

DY: I would advise them to remain committed to the principles of inclusivity and transparency throughout the process. They should ensure that the voices of all stakeholders, particularly local communities and environmental advocates, are heard and considered. Additionally, I would encourage them to engage with international best practices and learn from the experiences of other countries to ensure that the revised law is robust, forward-looking, and fit for purpose.

AN: thank you, Dr. Yudianto, for sharing your insights with our readers. We appreciate your time and expertise.

DY: My pleasure. thank you for this opportunity to discuss these crucial developments in Indonesia’s mining sector.

End of Interview

As Indonesia’s mining and energy sector stands at a critical juncture, Archyde News will continue to monitor and report on the ongoing revisions to the Mining and coal Law, keeping our readers informed about the potential impacts and implications of these changes on the industry and the nation’s economic growth.