Ministry of UMKM Ensures Mining Management Regulations Will Be Finalized Soon

The Ministry of Micro-, Small- and Medium-Scale Enterprises (“UMKM”) is preparing a ministerial regulation (“Permen”) as an implementing regulation of Regulation of the Government No. 96 of 2021 on the Implementation of Mineral and Coal-Mining Business Activities (“Minerba”), as amended most recently by Regulation of the Government No. 39 of 2025 (collectively referred to as “Regulation 39/2025”). Deputy for Medium-Scale Enterprises at the Ministry of UMKM, Bagus Rachman, said that the drafting of the Permen will be completed soon.

“We have finished the harmonization process. Hopefully, it will be completed this year,” Bagus told Hukumonline.

Bagus stated that the new regulation will govern the administrative provisions for mining conducted by Small- and Medium-Scale Enterprises (“UKM”). Several matters are regulated, including the criteria for UKM, which are businesses with a turnover of Rp 15 billion to Rp 50 billion or capital of Rp 5 billion to Rp 10 billion. In addition, UKM that will conduct mining activities must be in the form of a Limited Liability Company (“PT”).

“The UMKM Permen only covers administrative matters; technical aspects will be addressed in the Energy and Mineral Resources Permen,” he added. Bagus confirmed that both regulations will be interconnected and are targeted to be enforced simultaneously.