Menkop Budi Arie Appreciates The Minerba Bill That Gives Opportunities For Mining Management Cooperatives

Minister of Cooperatives (Menkop) Budi Arie Setiadi. (Photo: Doc. Kemenkop)

Minister of Cooperatives (Menkop) Budi Arie Setiadi appreciated the ratification of the revision of Law Number 4 of 2009 concerning Mineral and Coal (Minerba). This revision, as stated in the Draft Law (RUU) on the Fourth Amendment to Law Number 4 of 2009, opens wider opportunities for cooperatives to participate in managing mines in Indonesia.

Budi explained that several articles in the revision of the Minerba Law, including Articles 51, 60, and 75, explicitly provide opportunities for cooperatives to manage the Mining Business Permit Area (WIUP).

"In Article 51 it is stated that WIUP can be given to Business Entities, Cooperatives, individual companies, small and medium enterprises, or business entities belonging to religious community organizations, through an auction mechanism or priority giving," he said, Tuesday, February 18.

According to Budi Arie, this policy is in line with the mandate of Article 33 of the 1945 Constitution, which emphasized that the utilization of natural resources must be managed as much as possible for the prosperity of the people, including through populist-based institutions such as cooperatives.

"So far, mining management has been dominated by many corporations, even though our constitution mandates natural resources to be managed directly by the people. Through cooperatives, we can make this happen," said Budi Arie.

He added that the ratification of the Minerba Law is an important momentum for cooperatives to contribute more strategicly in the big current of Indonesia's future economy. With the entry of cooperatives into the mining sector, it is not only the capacity of cooperative businesses to increase, but also the welfare of members and the local community.

"The participation of cooperatives in managing mines will spur regional economic growth while at the same time increasing its contribution to Gross Domestic Product (GDP)," he explained.

Budi Arie considers this to be a concrete step in encouraging the principle of justice and equality for all business entities, including cooperatives, to play a role in the sustainable use of natural resources.

Budi Arie hopes that in the future more cooperatives will be interested and able to manage mining in Indonesia. Thus, the role of cooperatives as pillars of economic democracy can be stronger and have a positive impact on the national economy.