Implementing Regulations for Government Regulation on Mineral and Coal Mining Will Be Adjusted Following Constitutional Court Ruling

The Ministry of Micro-, Small-, and Medium-scale Enterprises (“MSME”) has highlighted the need to revise Regulation of the Minister (“Permen”) of Energy and Mineral Resources (Energi dan Sumber Daya Mineral – “ESDM”) to align with Decision of Constitutional Court (Mahkamah Konstitusi/MK) No. 160/PUU-XXIII/2025 (“MK Decision 160/2025”). 

“Yes, that concerns adjustments to the licensing process. The Ministry of ESDM is currently preparing the relevant mechanism,” said Bagus Rachman, Deputy for Medium Enterprises at the Ministry of MSMEs, to Hukumonline.  

To enable SMEs to continue managing mining operations following the MK Decision, Bagus stated that Permen ESDM No. 18 of 2025 on the Implementing Regulations of Government Regulation No. 39 of 2025 on the Second Amendment to Government Regulation No. 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities (collectively referred to as “PP 96/2021”) needs to be adjusted to align with the ruling, which affirms that the mechanism for granting priority in the allocation of Mining Business License Areas (“WIUP”) must be based on objective assessments.

According to Bagus, the Ministry of MSME has already established detailed and objective criteria for determining which SMEs are considered capable of managing mining operations within a mining area, as stipulated in Regulation of the Minister of MSME No. 4 of 2025 on the Verification of Small- and Medium-scale Enterprises Applying for Metal Mineral and Coal Mining Business License Areas through Priority Allocation, as amended by Regulation of the Minister of MSME No. 4 of 2026 (collectively referred to “Permen UMKM 4/2025”).