Government Drafts Regulations on Priority UMKM Managing Mines

The Ministry of Micro-, Small- and Medium-Scale Enterprises (“UMKM”) is finalizing a Regulation of the Minister on Small- and Medium-Scale Enterprises (“UKM”) managing mineral and coal (“Minerba”) mines. Deputy Assistant for Medium-Scale Enterprises at the Ministry of UMKM, Fitri Rinaldi, stated that the implementing regulations are still being drafted despite the current judicial review mechanism against Law No. 2 of 2025 on Fourth Amendment to Law No. 4 of 2009 on Mineral and Coal Mining (collectively referred to as “Minerba Law”).

“But while waiting for (judicial review), we will continue to work on all regulatory and implementation tools,” Fitri told Hukumonline.

Regarding the regulatory framework developed by the Ministry of UMKM, the regulations are not directly related to UKM mining permits. According to Fitri, the regulations will govern the verification process for UKM applying for mining permits.

Later, the Ministry of UMKM will provide recommendations on priority UKM that can manage and obtain mining business permits to the Ministry of Energy and Mineral Resources (“ESDM”). “To confirm that they are truly priority UKM, the Ministry of UMKM will be the one to give the clearance,” she explained.

Currently, the drafting of these regulations is being discussed among ministries, involving the Ministry of Investment and Downstream Industry/BKPM and the Ministry of ESDM.