The House of Representatives (DPR) approved the revision of Law No. 4 of 2009 on Mineral and Coal Mining (Minerba) into law on Tuesday, February 18. The Minerba Law stipulates that universities are entitled to receive benefits from mining activities but are not classified as mining operators.

Article 51A, paragraph 4 of the Minerba Law states that the central government may grant priority rights for Metal Mineral Business License Areas (WIUP) to state-owned enterprises (BUMN) or private businesses.

Furthermore, Article 51A, paragraph 5 specifies that universities can receive financial benefits from the management of these metal minerals. The provision states: "A portion of the profits from the management of priority WIUPs granted to BUMN or private enterprises shall be allocated to universities."

The government will further regulate the allocation of priority WIUPs to BUMN or private enterprises through a Government Regulation.

A day before the plenary session, the government and the DPR agreed to cancel the proposal that would have allowed universities to directly manage mining operations.

"We, in the government, after considering developments and in the interest of respecting and maintaining university independence, have decided that there will be no direct mining allocations to universities," said Minister Bahlil at the parliamentary complex in Senayan, Jakarta, on Monday (17/2).

Under the revised Minerba Law, state-owned enterprises (BUMN), regional-owned enterprises (BUMD), or other business entities will be assigned to support universities in need, particularly by providing research funding and scholarships for students. Universities will act solely as beneficiaries.

"In practice, these companies—whether state-owned, regionally owned, or private—will have the opportunity to contribute to universities in need by funding research, laboratories, or scholarships," Bahlil added.

Nine Key Points in the Minerba Law Revision:

1. Amendments to articles related to Constitutional Court rulings, specifically Articles 17A, 22A, 31A, and 169A.
2. Revision of Article 1, point 16, concerning the definition of feasibility studies.
3. Article 5: Holders of Mining Business Licenses (IUP) or Special Mining Business Licenses (IUPK) in the production operation phase must prioritize domestic needs before exporting and give precedence to fulfilling the needs of state-owned enterprises that serve the public interest.
4. Articles 35(5), 51(4-5), and 60(4-5): Business Licensing and metal mineral prioritization for WIUP coal allocation will follow the electronic Business Licensing System managed by the central government.
5. Article 100(2): Reclamation and post-mining impact protection for communities and local areas will involve local governments under the direction of the minister.
6. Article 108: Community development and empowerment programs will focus on local communities and indigenous groups near mining areas, implemented through:
   a. Corporate social and environmental responsibility programs.
   b. Involvement of local and indigenous communities in mining activities.
   c. Business partnership programs and community-based economic empowerment.
7. Article 169A: Introduction of environmental audit requirements.
8. Article 171B: IUPs issued before the enactment of this law, which have overlapping WIUPs as determined by central government evaluation, will be revoked and returned to the state.
9. Article 174(2): Monitoring and review of the law's implementation.

This article is published in partnership with Katadata

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