Jakarta – The Publish What You Pay (PWYP) Indonesia Coalition has urged the government to impose a temporary moratorium on the issuance of new Mining Business Permit Areas (WIUPs) following Constitutional Court (Mahkamah Konstitusi/MK) Decision No. 160/PUU-XXIII/2025 concerning the priority mechanism for granting WIUPs. According to PWYP, the ruling must be followed by implementing regulations that ensure the licensing process is objective, transparent, and accountable.
In a press release issued in Jakarta on 22 July 2026, PWYP Indonesia stated that the Constitutional Court ruled the phrase “through a priority mechanism” in Article 51 paragraph (1) and Article 60 paragraph (1) of Law No. 2 of 2025 on Mineral and Coal Mining to be constitutional, provided that its implementation is based on clear, objective, transparent, and accountable parameters and is not carried out through direct appointment.
PWYP argues that an open auction mechanism remains the fairest instrument and carries the lowest risk of corruption in the management of non-renewable natural resources. The organization also warned that a priority scheme could lead to the expansion of new mining permits at a time when governance problems in the mining sector have yet to be resolved.
PWYP Indonesia National Coordinator Aryanto Nugroho said that the Court’s ruling only addresses procedural aspects and does not resolve the fundamental problems of natural resource governance.
“This ruling only addresses procedure, not the root of the problem. State control over natural resources must not be held hostage by discretionary power disguised as affirmative policy,” Aryanto said.
PWYP also warned of potential problems in the revision of Government Regulation No. 39 of 2025 if it is drafted without meaningful public participation. According to the organization, the risks include the formulation of criteria that benefit only certain parties, limited transparency in the assessment results, and the absence of an obligation to disclose the beneficial ownership information of priority permit recipients.
Furthermore, PWYP emphasized that transparency in the granting of mining permits is part of Indonesia’s commitment as an implementing country of the Extractive Industries Transparency Initiative (EITI). The organization noted that the 2023 EITI Standard requires the disclosure of licensing processes, criteria, applicant lists, and beneficial ownership information in the allocation of mining permits.
PWYP Indonesia researcher Muhammad Adzkia Farirahman stated that the controversy surrounding permits granted through a priority pathway is not a new issue. He argued that easing permit issuance without adequately considering environmental protection and sustainable development could encourage excessive exploitation of natural resources.
While awaiting the completion of the revised implementing regulations, PWYP Indonesia called on the government to temporarily halt the issuance of new mining permits under any scheme. The organization also urged the government to maintain the open auction mechanism, disclose the criteria and assessment results for priority WIUP allocations, guarantee the implementation of Free, Prior and Informed Consent (FPIC), and conduct independent environmental and financial audits of the implementation of priority mining permits.
Source: beritabaru.co