Indonesia’s parliament is preparing to vote on a significant amendment to the country’s mining law, scheduled for Tuesday. This proposed revision aims to enhance the development of domestic mineral processing industries and regulate mining permits for religious organizations and universities.
The amendment seeks to increase participation from smaller businesses in the mining sector and ensure a stable supply of ore for mineral processing industries. As a resource-rich nation, Indonesia is focused on advancing its domestic metals sector. A draft bill was approved during a meeting between key parliamentary members and the government on Monday, paving the way for a formal vote during a plenary session.
Under the new law, companies that plan to establish processing facilities will receive priority access to mining concessions. Additionally, religious groups and universities will gain preferential access to specific mining areas through business units they control, providing them with new income sources. Previously, such privileges were reserved for state-owned enterprises.
Energy and Mineral Resources Minister Bahlil Lahadalia emphasized that this amendment would provide clarity as the government reorganizes mining licensing processes. The revision is also a response to a 2021 constitutional court ruling that mandated changes to certain articles of the existing mining law deemed unconstitutional.
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