Antara News·Indonesia·Tuesday, November 3, 2026 at 06:05 AM UTC

Indonesia plans rule changes to spread mining benefits beyond Jakarta

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K. Dewanto, Tegar Nurfitra

..the government seeks to ensure that downstreaming not only generates greater economic value but also delivers tangible benefits to local communities,

Jakarta (ANTARA) - Indonesia plans to revise its mining regulations to enable regions outside Jakarta to benefit more from the country's mining sector, Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said.

He outlined the planned reforms while emphasizing the need for equitable implementation of Indonesia's natural resource downstreaming policy at the opening of the 2026 Mineral and Coal Convention Expo in Jakarta on Monday (November 2).

In a statement cited on Tuesday, Bahlil said he was concerned that most companies holding nickel and coal mining permits were headquartered in Jakarta, although the commodities were primarily extracted in Kalimantan, Sulawesi, and Maluku.

The government aims to change that situation, he said, stressing the need to create broader opportunities for local businesses to benefit from natural resources in their respective regions.

He underscored the importance of mining regulations that better accommodate cooperatives, region-owned enterprises, and micro, small, and medium enterprises (MSMEs).

"We want people in the regions to become both participants in and beneficiaries of development through the management of local natural resources," the minister said.

Bahlil, who also serves as energy and mineral resources minister, emphasized the government's commitment to increasing local entrepreneurs' participation in mining projects and preventing opportunities in the sector from becoming concentrated among certain groups.

"The government is responsible for ensuring fairness," he said.

Tri Winarno, director general of minerals and coal at the Energy and Mineral Resources Ministry, highlighted the constitutional mandate to manage natural resources for the greatest benefit of the people.

"Our mineral and coal resources must be managed in a way that strengthens national industries, creates jobs, and improves public welfare," he said.

He added that local communities were entitled to benefit from mining activities.

To support that goal, he said, the government had introduced community development and empowerment programs to help local stakeholders derive greater benefits from mining operations.

He added that companies were encouraged to provide MSMEs with broader access to financing, markets, and supply chains while taking into account the impact of their mining operations on local communities.

"By prioritizing permits for local entrepreneurs and strengthening community empowerment programs, the government seeks to ensure that downstreaming not only generates greater economic value but also delivers tangible benefits to local communities," he said.

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