MSMEs And Cooperatives Can Now Manage Mining, The Government Is Expected To Provide Assistance

JAKARTA - Researcher at The Reform Initiative Unggul Heriqbaldi as well as lecturer at the Faculty of Economics, Universitas Airlangga, Unggul Heriqbaldi assessed that the new Mineral and Coal Mining Law (Minerba) opens up opportunities for equal distribution of natural resources to all components of the nation. Both for small and medium enterprises (SMEs) and cooperatives, including BUMD.

Previously, this was a sector dominated by large companies. This is an affirmative step that can increase the involvement of small and medium enterprises and expand job opportunities in this sector," said Unggul, quoted on Friday, February 21.

He said one of the points in the Minerba Law regarding the change in the scheme for granting Mining Business Permits (IUP) or Mining Business Permit Areas (WIUP), from what was originally fully through the auction mechanism, now there is an additional scheme, namely a priority scheme.

"With more and more players, it is hoped that competition will become healthier, innovation will increase, and economic benefits will be more equitable," said Unggul.

However, he said, the granting of mining concession permits for MSMEs and cooperatives has a number of challenges, one of which is because the mining industry has very capital-intensive characteristics and requires significant technical expertise and experience.

"This can be a big challenge for MSMEs and cooperatives that have just entered this sector, especially in terms of access to financing, regulatory compliance, and the application of safety and environmental standards," he said.

Unggul considers this policy to be effective in turning the wheels of the national economy if the government provides financial support and incentives. One example is with the funds rolling so that MSMEs and cooperatives can meet large initial capital needs.

According to him, technical and managerial assistance is also needed. The government must provide training and technical assistance for MSMEs and cooperatives so that they are able to operate efficiently, comply with environmental standards, and manage their business professionally.

"Not only that, there must be a healthy partnership scheme. That means, regulations must ensure that MSMEs and cooperatives are not only passive subcontractors for large companies, but really have the opportunity to develop independently in the supply chain of the mining industry," he concluded.