Business · Energy & Commodities · 2 hrs ago
Indonesia Seeks Greater Mining Access for Cooperatives and Local Businesses
Indonesia’s energy and mining minister, Bahlil Lahadalia, says the government wants local businesses to gain more from mining.
The plan includes giving cooperatives and small businesses priority for mining permits without a tender.
Bahlil says supporting regulations have been prepared and the policy has been reviewed by the Constitutional Court.
The government has also legalised about 43,000 community oil wells that had operated without permits.
Some wells produce four to five barrels a day, which Pertamina buys at 80% of the Indonesian Crude Price.
Another rule bars mining companies with permits from hiring affiliated contractors, which Bahlil says should open work to local businesses.
The government is also regulating coal production while making room for smaller permit holders.
Indonesia’s energy and mining minister, Bahlil Lahadalia, said the government is widening access to mining for cooperatives, small businesses and local entrepreneurs.
Measures include priority mining permits for cooperatives and small businesses without a tender, legalizing community oil wells and limiting ties between mining permit holders and their contractors.
Bahlil said the policies aim to spread the economic benefits of natural resources to communities in mining regions.
He announced the measures at a national meeting of the Indonesian Indigenous Entrepreneurs Association in Jakarta on 12 October.
- Who
- Bahlil Lahadalia, Indonesia’s energy and mining minister, announced the measures.
- What
- The government is widening mining access for cooperatives, small businesses and local entrepreneurs through regulatory changes.
- When
- 12 October 2026.
- Where
- Jakarta, Indonesia.
- Why
- Bahlil said the policies aim to spread the economic benefits of natural resources beyond large companies to communities in mining regions.
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- Priority permits
- Cooperatives and small businesses can receive mining permits without a tender
- Community oil wells
- About 43,000 wells have been legalized
- Oil production
- Some wells produce four to five barrels per day
- Oil purchase price
- Pertamina buys the oil at 80% of the Indonesian Crude Price
- Contractors
- Contractors for companies holding mining permits must not be affiliated with those companies
What people are saying
I want people from the regions, if they are told to tender against people from Jakarta with capital of tens of billions, hundreds of billions, to have already lost before the tender even begins.
My task is to make regulations; you are free to compete. I cannot give you fish; I will show you how to get fish, which was previously centralized, and we are changing it so it reaches the regions.
For companies that hold mining permits, their contractors must not be affiliated; give local people the opportunity to do the work.
Sources
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