Minister of Energy and Mineral Resources (ESDM) as well as Chairman of the Golkar Party, Bahlil Lahadalia emphasized his commitment to encourage increased Regional Original Revenue (PAD) through optimizing the mining sector.
He made the statement at the Regional Conference (Musda) XI DPD of the Central Sulawesi Golkar Party in Palu, Sunday, August 24.
Bahlil assessed that Central Sulawesi has enormous natural resource potential, including the mining sector which supports the regional economy. However, it was highlighted that the sector’s contribution to PAD had not been optimal.
National economic growth in the second quarter 5.12 percent, inflation is maintained below three percent. I am sure that Central Sulawesi’s economic growth is higher. But PAD has not been maximal due to this mining problem, is it true or not?’ Bahlil said in his speech, quoted Monday, August 25.
Bahlil said that one of the strategic steps taken by the government to optimize the benefits of natural resources is through downstream mining. He said downstreaming was President Prabowo Subianto’s priority program which was expected to provide added value and equal distribution of development results for local communities.
Downstreaming is Mr. President’s flagship program. We at the Ministry of Energy and Mineral Resources together with the Golkar Party and the coalition have changed the Minerba Law to ensure that natural resources are actually managed for the welfare of the people,” he said.
According to him, this regulatory change also aims to provide justice to local people. He assessed that so far mining business permits (IUP) are mostly controlled by large companies based in Jakarta, while local people do not get a portion.
I’m a former businessman, I know it’s hard to get permission first. Our ancestors’ belongings, but the IUP holders are all Jakartans. This is unfair. We change it so that local children become masters in their own country,” he said.
In the new Minerba Law, Bahlil continued, the government gives priority IUPs to cooperatives, MSMEs, and BUMDs. This scheme, he said, is a way for local communities to play a direct role in mining management.
“We have to build a new conglomerate (conglomerate) in the regions. Don’t continue the Jakarta conglomerate. We need synergy, synergy, big ones. Don’t reduce it, we maintain it, we encourage it. But also we want the (entrepreneurs) to come up. Otherwise, it will be difficult to realize equity, “he said.
In addition, Bahlil emphasized that he would follow up on licensing issues that hinder the increase in Central Sulawesi’s PAD. He gave an example, there are differences in licensing regulations between the Ministry of Energy and the Ministry of Industry which makes the potential for regional income not optimal.
“If we can withdraw all the potential PAD, Central Sulawesi can get an additional IDR 2 trillion. If the current APBD is around IDR 5.5 trillion, this additional IDR 2 trillion will be enough to strengthen regional fiscals,” he said
Bahlil emphasized his commitment to resolve the issue. Then, bring a direct report to President Prabowo.
“I promise this will be my main task. I already know the gap. We will make sure natural resource management runs well for the welfare of the people,” said Bahlil.
Previously, the fourth revision of Law Number 4 of 2009 concerning Mineral and Coal Mining of the Mineral Law was ratified by the DPR RI on February 18, 2025 at the 13th Plenary Meeting of Session Period II at the DPR RI Building, during the era of leadership of the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia.
This revision of the law is an initiative of the DPR RI, was unanimously approved by eight factions, and brought with the Government through the Legislation Body (Baleg) as a bill proposed by the DPR. The latest Minerba Law introduces a mining permit scheme (WIUP/IUP) with priority mechanisms, not only through tenders. Priorities are given to MSMEs, Cooperatives, BUMD, and religious organizations.
Meanwhile, for universities, IUP is given through assignments to BUMN/BUMD/privates in the context of research and scholarship funding, aka not getting direct mines. Then BUMN/BUMD/private who get IUP is used to deepen downstreaming and industrializing mines, as well as strengthen local added value.
