At Golkar Regional Conference in Central Sulawesi, Bahlil Promises to Resolve Mining Issues

Minister of Energy and Mineral Resources (ESDM) and General Chairman of the Golkar Party, Bahlil Lahadalia (@golkar)

JAKARTA - The Minister of Energy and Mineral Resources (ESDM) and Chairman of the Golkar Party, Bahlil Lahadalia, reiterated his commitment to increasing Regional Original Revenue (PAD) by optimizing the mining sector.

He made this statement at the 11th Regional Conference (Musda) of the Golkar Party's Central Sulawesi Regional Leadership Council (DPD) in Palu on Sunday, August 24.

Bahlil assessed that Central Sulawesi has enormous natural resource potential, including the mining sector, which supports the regional economy. However, he highlighted the sector's suboptimal contribution to PAD.

"National economic growth in the second quarter was 5.12 percent, inflation was maintained below three percent. I am confident that Central Sulawesi's economic growth is higher. But PAD has not been maximized due to this mining issue, is that right?" Bahlil said in his speech, quoted on Monday, August 25.

Bahlil revealed that one of the government's strategic steps to optimize the benefits of natural resources is through downstream mining. He stated that downstreaming is a priority program of President Prabowo Subianto, which is expected to provide added value and equitable distribution of development outcomes for regional communities.

"Downstreaming is the President's flagship program. We at the Ministry of Energy and Mineral Resources, along with the Golkar Party and the coalition, have amended the Mineral and Coal Mining Law to ensure that natural resources are truly managed for the welfare of the people," he said.

According to him, this regulatory change also aims to provide justice for regional communities. He believes that mining business permits (IUPs) have been largely controlled by large companies based in Jakarta, while local communities have received little.

"I'm a former entrepreneur, and I know how difficult it is to obtain permits. It's our ancestors' legacy, but all the IUP holders are from Jakarta. This is unfair. We need to change this so that local people can become masters in their own land," he said.

In the new Mineral and Coal Mining Law, Bahlil continued, the government prioritizes IUPs for cooperatives, MSMEs, and regionally-owned enterprises. This scheme, he said, provides a way for local communities to play a direct role in mining management.

"We must build new conglomerates in the regions. Don't let them remain Jakarta-based. We need synergy, big synergy. Don't belittle cities; we must maintain them and encourage them. But we also want to support emerging entrepreneurs. Otherwise, it will be difficult to achieve equality," he said.

Furthermore, Bahlil emphasized that he would follow up on licensing issues that hamper the increase in Central Sulawesi's Regional Original Revenue (PAD). He cited differences in licensing regulations between the Ministry of Energy and Mineral Resources and the Ministry of Industry, which hinder the region's potential revenue.

"If we can tap all potential PAD, Central Sulawesi could receive an additional IDR 2 trillion. With the current regional budget (APBD) around IDR 5.5 trillion, this additional IDR 2 trillion would significantly strengthen the regional fiscal," he said.

Bahlil reiterated his commitment to resolving the issue. He then submitted a report directly to President Prabowo.

"I promise this is my primary task. I already know the gaps. We will ensure that natural resource management is carried out properly for the welfare of the people," Bahlil said.

Previously, the fourth revision to Law Number 4 of 2009 concerning Mineral and Coal Mining—the Minerba Law—was passed by the Indonesian House of Representatives (DPR RI) on February 18, 2025, during the 13th Plenary Session of the Second Session Period at the DPR RI Building, during the leadership of Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia.

This revision was an initiative of the DPR RI, unanimously approved by eight factions, and submitted to the government through the Legislative Body (Baleg) as a bill proposed by the DPR. The latest Minerba Law introduces a priority mechanism for granting mining permits (WIUP/IUP) rather than solely through tender. Priority is given to MSMEs, cooperatives, regionally-owned enterprises (BUMD), and religious organizations.

Meanwhile, for universities, IUPs are granted through assignments to BUMN/BUMD/private entities for research funding and scholarships, rather than directly acquiring mining rights. Then, BUMN/BUMD/private companies that obtain IUPs are used to deepen downstreaming and industrialization of mining, as well as to strengthen local added value.