Regulation of the Government on Mineral and Coal Finalized, Ministry of Energy Prepares Technical Ministerial Regulation

The drafting of regulation of the the government (Rancangan Peraturan Pemerintah– “ RPP ”) implementing Law No. 2 of 2025 on the Fourth Amendment to Law No. 4 of 2009 on Mineral and Coal Mining (“ Minerba ”) (collectively referred to as “ Law 4/2009 ”) has been completed.

The Secretary General of the Directorate General of Minerba, Siti Sumilah Rita Susilawati, stated that the new regulation serves as a refinement of Regulation of the Government No. 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities, as amended by Regulation of the Government No. 25 of 2024 (collectively referred to as “ PP 96/2021 ”).

“The RPP has been completed. It is now awaiting promulgation,” Siti told Hukumonline.

Siti stated that, in line with the completion of the regulation of the government derived from Law 4/2009, the Ministry of Energy and Mineral Resources (“ ESDM ”) is currently in the process of drafting a technical Ministerial Regulation mandated by the law. Law 4/2009 emphasizes the prioritization of mineral and coal resources for national interests through the mechanism of Mining Business License Areas (“ WIUP ”) and Special Mining Business License Areas (“ WIUPK ”), which may be granted either through auction or on a priority basis—particularly to State-Owned Enterprises (BUMN), Regionally-Owned Enterprises (BUMD), private entities, cooperatives, Small- and Medium- Scales Enterprises (“ UKM ”), as well as religious social organization (Ormas). Law 4/2009 also governs downstream processing, mandates the use of local or national mining service providers, and provides for evaluation processes that may result in the return or revocation of Mining Business Licenses (“ IUP ”).

“The expectation is that this can be accommodated within a single Ministerial Regulation that we are currently formulating,” she explained.