In brief
Indonesia will revise its mining laws to broaden the economic benefits of mineral extraction beyond Jakarta, aiming to involve local enterprises, cooperatives and MSMEs in Kalimantan, Sulawesi and Maluku. Coordinating Minister Bahlil Lahadalia announced the reforms at a convention in Jakarta, stressing fair distribution of resource wealth. The exact implementation timeline remains unconfirmed.
Indonesia announced on Monday, November 2, 2026, that it will revise its mining regulations to allow regions outside Jakarta to benefit more from the country’s mineral extraction, according to a statement from Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia.
The announcement came during the opening session of the 2026 Mineral and Coal Convention Expo in Jakarta. Lahadalia said most nickel and coal mining permits are held by companies headquartered in Jakarta, although the resources are extracted in Kalimantan, Sulawesi and Maluku. He warned that this imbalance could concentrate opportunities in a small group of firms.
"We want people in the regions to become both participants in and beneficiaries of development through the management of local natural resources," Lahadalia told the expo.
Lahadalia emphasized that the reforms will target the inclusion of cooperatives, region-owned enterprises and micro, small and medium enterprises (MSMEs) in mining projects. He also noted the government’s commitment to ensuring fairness in downstreaming natural resources, citing constitutional mandates to manage resources for the greatest good of the people.
Other government officials echoed the minister’s remarks. Tri Winarno, director general of minerals and coal at the Ministry of Energy and Mineral Resources, highlighted the constitutional duty to strengthen national industries and create jobs through resource management, although he did not give further details on the regulatory changes.
While the government has confirmed its intent to broaden mining benefits, specific deadlines, procedural adjustments, and regulatory frameworks remain unconfirmed. The new rules are expected to compete with existing policies aimed at increasing local entrepreneurs’ participation, but the final rollout schedule has yet to be released.
