Jakarta. The House of Representatives (DPR) and the government have approved the revision of the 2009 Mineral and Coal Mining Law (Minerba Law), advancing the draft bill to the plenary session for final approval. The plenary session is scheduled for Tuesday.

The decision was reached during a plenary meeting on Monday at the DPR complex in Senayan, Jakarta. All political factions in the legislature unanimously agreed to move forward with the revised law, either with or without reservations.

"After hearing the viewpoints of all eight factions, 100 percent of them support the revision of the Mining Law," said Bob Hasan, Chair of the DPR's Legislative Body.

The proposed revision includes provisions allowing social organizations, universities, and small and medium enterprises (SMEs) to manage natural resources. Both the DPR and the government have agreed to strengthen these regulations.

"We believe that the priority in managing mines, which has traditionally been given only to state-owned enterprises, will be made available to SMEs, cooperatives, universities, and also companies that drive value through downstream industrialization," said Energy and Mineral Resources Minister Bahlil Lahadalia.

Under the new framework, universities would be given the authority to manage natural resources to support economic growth. However, in recent discussions, it was decided that universities would only benefit from mining operations, while the management of the mines would be entrusted to state-owned enterprises (SOEs), regional government-owned enterprises (BUMDs), or private entities appointed by the government.

The revision has raised concerns from Indonesia Corruption Watch (ICW), which has flagged several clauses in the draft bill. ICW pointed to Articles 51(1), 51A(1), and 75(2), which expand the scope of recipients for mining licenses to include religious organizations and universities through affiliated businesses. ICW argues that this revision could be politically motivated, benefiting government loyalists at the expense of competent organizations with no experience in the mining sector. 

ICW further noted that the revision’s potential to exacerbate corruption is significant. The bill allows for mining licenses to be granted through prioritization, bypassing the competitive auction process that previously existed. Without clear criteria for prioritization, the risk of corruption increases, as companies—be they private firms, religious organizations, or universities—could resort to influence-peddling or bribery to secure mining permits.

Despite these concerns, the revision moves forward, with critics warning that it could expand rent-seeking behavior in Indonesia’s extractive industries, building on a history of corruption in the sector. ICW has highlighted that from 2016 to 2023, corruption in the natural resource management sector caused the state an estimated loss of Rp 24.8 trillion ($1.6 billion).