Indonesia plans mining rule changes to widen benefits for regions
The government wants cooperatives, regional enterprises and smaller businesses to have more opportunities in mining, minister Bahlil Lahadalia said.
Indonesia intends to change mining regulations so that regions beyond the capital gain more from their natural resources, Energy and Mineral Resources Minister Bahlil Lahadalia said on November 2. The plans seek to increase opportunities for local businesses and communities.
At Jakarta's 2026 Mineral and Coal Convention Expo, Bahlil pointed to a geographical imbalance: most businesses with nickel and coal mining permits had headquarters in Jakarta, whereas extraction took place mainly in Kalimantan, Sulawesi and Maluku.
Bahlil, who also holds the coordinating minister portfolio for downstreaming and energy transition, said regulations should better accommodate cooperatives, region-owned enterprises and smaller firms, including micro businesses. He said the government wanted greater participation by local entrepreneurs rather than opportunities concentrated among particular groups.
Tri Winarno, the ministry's director general responsible for minerals and coal, said the constitutional mandate required natural resources to benefit the public. Mining should help strengthen domestic industries, generate employment and improve welfare, he said.
Tri said community development and empowerment programmes had been introduced to increase local benefits from mining. Companies were also being encouraged to help smaller businesses obtain financing, reach markets and enter supply chains, while considering mining's effects on surrounding communities.
