Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia said the goal of the revised Mineral and Coal Mining Law, which is set to be approved by parliament on Tuesday, is to empower local communities around mining sites, rather than bringing in businesses from the capital, Jakarta.

The Golkar Party chairman emphasized that micro, small, and medium enterprises (MSMEs) receiving mining concessions should be based in the mining areas, not from outside the region or Jakarta.

“These MSMEs will be for the local communities. For example, in North Maluku, the MSMEs receiving the concession will be from North Maluku, not Jakarta. President Prabowo Subianto wants to promote equity,” Bahlil said in Jakarta on Monday.

According to Bahlil, many mining companies with permits have their headquarters in Jakarta, even though they operate in mining regions. Through the revision of the Mineral and Coal Law, the Prabowo-Gibran government aims to give local communities a larger role in managing mines.

“Local people will get their share. Regarding capital, we want these MSMEs to eventually grow. We don’t want local people to be seen as just small businesses forever, confined to limited opportunities,” he said.

Bahlil believes an MSME with a revenue of around Rp 50 billion ($3 million) and capital of Rp 10 billion could rapidly grow into a large business within one or two years. This is part of the government's efforts to create large entrepreneurs from the regions, promoting economic equality and empowering local communities.

He reiterated that one of the primary goals of revising the Mineral and Coal Law is to achieve economic equity and reduce the gap between the rich and the poor. The wealth of the country, he argued, should not be controlled by a small group of people or a few individuals who dominate most of the nation’s resources.

Bahlil also argued that those opposed to the revision likely prefer the nation's wealth to remain in the hands of only a few. The government, he said, wants to open up opportunities for local communities, especially regional MSMEs, to manage and benefit from the natural resources in their areas.

He reminded the public not to doubt the ability of regional MSMEs to manage mining. As a former MSME entrepreneur, Bahlil said he has already proven local MSMEs can compete with large businesses, including those from Jakarta, if given the chance. The perception of regional MSMEs' incapacity stems from the lack of opportunity. If given the space, he believes they will grow stronger and more successful.

Bahlil hopes the revision of the Mineral and Coal Bill will create opportunities for the rise of large regional entrepreneurs and contribute to a fairer distribution of economic resources.

Add as a preferred source on Google +