The Minerba Law Is Considered To Be Able To Expand Jobs And Economic Equity

The Indonesian House of Representatives held a plenary meeting at the Parliament Complex, Senayan, Jakarta, Thursday (23/1/2025). BETWEEN/Good Ahmad Rizaldi.

JAKARTA - The government and the DPR's decision to ratify the revision of the Minerba Law received a positive response from researchers and academics. One of them is regarding the change in the scheme for the granting of a Mining Business License (IUP) or the Mining Business Permit Area (WIUP), from the original fully through the auction mechanism, now there is an additional scheme, namely a priority scheme.

The scheme is implemented in order to provide justice for the distribution of natural resources to all components of the nation, both for micro, small and medium enterprises (MSMEs) and cooperatives, including BUMD.

Researcher of The Reform Initiative as well as lecturer at the Faculty of Economics, Universitas Airlangga, Unggul Heriqbaldi assessed that the revision of the regulation opened up economic opportunities for MSMEs and cooperatives to participate in the mining industry.

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 in Jakarta, Thursday, February 20.

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

However, Unggul added, 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.

Therefore, said Unggul, this policy will effectively turn 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.

It also needs technical and managerial assistance. 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," he said.

"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 said.