Indonesia Introduces New Mining Regulations for Religious Organizations

Expanded Opportunities for Mining Management

The Indonesian government has officially opened opportunities for religious organizations (ormas keagamaan) to manage mineral and coal mining areas through a new regulation. The Minister of Energy and Mineral Resources Regulation No. 18/2025, signed on November 14, 2025, by Minister Bahlil Lahadalia, outlines the specific requirements and allocation framework for these new mining opportunities.

Key Provisions of the New Regulation

The new regulation allows religious organizations to manage mining areas up to 25,000 hectares for mineral mining and 15,000 hectares for coal mining, as stated in Article 28(1)(b) of the regulation. This provision is part of the government's broader effort to promote increased community participation in the mining sector while maintaining strict regulatory oversight.

Eligibility and Priority Allocation

The regulation grants priority allocation for mining permits to religious organizations, cooperatives, state-owned enterprises (BUMN), and regional state-owned enterprises (BUMD). The priority is given in the context of enhancing educational access and institutional capacity of higher education institutions. Private companies are also eligible when their projects focus on value-added processing and downstream development.

Compliance Requirements

While the new regulation offers significant opportunities, it also imposes strict compliance requirements. Religious organizations and other eligible entities must meet administrative, technical, and commitment requirements through the Online Single Submission (OSS) system. This ensures that all mining operations maintain regulatory compliance and environmental standards.

Implications for Indonesia's Mining Sector

The introduction of these regulations marks a significant shift in Indonesia's mining policy, potentially broadening participation in the sector while maintaining regulatory oversight. The new framework is expected to stimulate local economic development and promote more inclusive growth in the mining industry. However, the success of this initiative will depend on effective implementation and monitoring of the new regulatory requirements.