Antara News·Indonesia·Tuesday, November 3, 2026 at 03:24 PM UTC

Ministry urges local entrepreneurs to tap priority mining areas

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Shofi, Kenzu

Jakarta (ANTARA) - Indonesia's Ministry of Micro, Small and Medium Enterprises is urging local small and medium-sized businesses to seek priority allocations of mining areas, opening opportunities in the country's mining industry.

Deputy for Medium Enterprises Bagus Rachman said the policy would help local businesses operate professionally and capture greater economic benefits from natural resources in their regions.

"Regulatory breakthroughs such as priority mining business permit areas (WIUP) pave the way for local small and medium-sized businesses to operate mining ventures professionally, independently and responsibly," Rachman said at Minerba Convex 2026 here Monday.

He said Law No. 2 of 2025 and Government Regulation No. 39 of 2025 provide a framework for granting priority mining areas to eligible small and medium-sized businesses.

The ministry screens applicants through SAPA UMKM, using capital criteria of Rp1 billion to Rp10 billion (US$55,000 to US$551,000) or annual sales of Rp2 billion to Rp50 billion (US$110,000 to US$2.76 million).

The ministry has not disclosed how many businesses have applied for or obtained priority mining areas under the policy.

Beyond opening mining opportunities to local businesses, the government also wants micro and small enterprises in mining regions to participate in related economic activities.

Rachman said businesses receiving priority mining areas must implement a Corporate Business Responsibility (CBR) program involving local companies in supply chains, developing regional commodities, creating jobs and building business partnerships.

The ministry is also preparing assistance with environmental, social and governance (ESG) standards, certification, financing and partnerships with mining companies.

It is working with the Energy and Mineral Resources Ministry and regional governments to address capital and technology constraints, particularly in secondary processing and recycling.

"The strategy is reinforced by project-based financing, including People's Business Credit (KUR), technology transfers from smelter owners and regular business-matching events," he added.

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