October 8, 2025 | 08:51 pm
TEMPO.CO, Jakarta - The Association of Indonesian Mining Professionals (Perhapi) says the plan to allow cooperatives to manage mining operations poses several challenges. Vice Chair of Perhapi, Resvani, said the mining sector is a capital-intensive and tech-forward industry, which simply cannot be managed without the support of investors and experienced experts.
Not only costly, but mining investment also poses high risks. During the exploration stage, for example, the general survey, geological survey, and detailed exploration required a significant budget.
"The success rate is under 5 percent so cooperatives or small-capital SMEs must not be involved without investor backing," Resvani said on Wednesday, October 8, 2025.
Resvani explained that the costs of mining exploration vary depending on the commodities and field conditions. For instance, the drilling costs for coal mines, conforming to national standards, range from 200 to 250 meters, with expenses of about Rp2 million per meter. At a depth of 100 meters, one drilling point can cost up to Rp200 million.
He added, "This does not include topographic costs, binding points, and other technical requirements. For an area of 100-500 hectares alone, the expenses can reach Rp10 to Rp20 billion. For large mines, the costs can amount to hundreds of billions, even trillions of rupiah," he said.
Resvani believes that the government's policy to allow cooperatives to manage mines through Government Regulation Number 39 of 2025 is a positive step towards economic equality. However, he thinks that cooperatives cannot operate independently without collaborating with other parties.
"They still need to partner with investors to obtain funding and expert assistance. This collaboration is crucial to help cooperatives grow and not fail halfway," said Resvani.
Previously, the government provided opportunities for cooperatives to manage mineral and coal mines through Government Regulation Number 39 of 2025 concerning the Second Amendment to Government Regulation Number 96 of 2021 regarding the Implementation of Mineral and Coal Mining Business Activities. Minister of Cooperatives and SMEs Ferry Juliantono stated that this new regulation strengthens the position of cooperatives in the mining sector.
"This policy is expected to have a greater economic impact, especially for communities in regions with mining potential," said Ferry in a written statement on Tuesday, October 7, 2025.
Minister of Energy and Mineral Resources Bahlil Lahadalia mentioned that permits for cooperatives must consider the location and the manager's capacity. "They must have the ability and experience in the field. We will prioritize cooperatives located in mining areas, so that the local community has the opportunity to manage their own natural resources," stated Bahlil.
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