Minister Budi Arie Wants Cooperatives to Immediately Manage Mines After Minerba Law is Ratified

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February 19, 2025 | 08:42 am

TEMPO.CO, Jakarta - Cooperatives Minister Budi Arie Setiadi wants to immediately implement mining permits for cooperatives regulated in the revision of Law Number 4 of 2009 concerning Mineral and Coal Mining (Minerba) ratified by the DPR today. Budi hopes that with the ratification of the revision of the Minerba Law, it will encourage many cooperatives to be interested in managing mining in Indonesia.

"The participation of cooperatives in managing mines will drive regional economic growth and at the same time increase their contribution to the Gross Domestic Product (GDP)," said Budi in an official statement on Tuesday, 18 February 2025. He added that the ratification of the Minerba Law is a crucial momentum for cooperatives to contribute to Indonesia's future economic growth.

With the entry of cooperatives into the mining sector, Budi said, not only will the business capacity of cooperatives increase, but it will also be followed by an increase in the welfare of members and the local community. "This is also a concrete step in promoting the principles of justice and equality for all business entities, including cooperatives, to play a role in the sustainable utilization of natural resources," claimed Budi.

The General Chairperson of Projo appreciates the DPR for ratifying the Minerba Law, which opens up broader opportunities for cooperatives to manage mines in Indonesia. He explained that several articles in the Minerba Law, including Articles 51, 60, and 75, explicitly provide opportunities for cooperatives to manage the Mining Business License Area (WIUP).

"Article 51 states that WIUP can be granted to Business Entities, Cooperatives, individual companies, small and medium-sized businesses, or businesses owned by religious community organizations, through auction mechanisms or priority grant," said Budi. According to him, this policy is in line with the content of Article 33 of the 1945 Constitution, which mandates that the utilization of natural resources must be managed to the greatest extent for the prosperity of the people, namely through people-based institutions such as cooperatives.

"So far, mining management has been dominated by corporations, even though our constitution mandates that natural resources should be managed directly by the people. Through cooperatives, we can realize this," said Budi Arie. He urged all cooperatives in Indonesia to be grateful to President Prabowo Subianto and the DPR for allowing cooperatives to play a role in the mining sector.

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