BETAHITA.ID – The government issued a regulation regarding the priority granting of special mining business permits (IUPK) to religious organizations through PP No. 25 of 2024 concerning the Implementation of Mining Business Activities. However, the regulation signed by President Joko Widodo is considered not only to be in conflict with the Mineral and Coal Law as a regulation above it but also to contain contradictions between articles, which are in disarray.

Last Thursday (30/5/2024), President Jokowi signed PP No. 25 of 2024 concerning Amendments to PP No. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities. Article 83A of the regulation regulates the priority of offering Special Mining Business Permit Areas (WIUPK) in former Coal Mining Concession Work Agreement (PKP2B) areas to business entities owned by religious mass organizations.

Indonesia’s National Publish What You Pay (PWYP) Coordinator, Aryanto Nugroho, revealed that this article is contrary to Law No. 3 of 2020 concerning Minerals and Mining. Article 75 of the Minerba Law states that Special Mining Business Permits (IUPK) are given to 3 types of business entities, namely State-Owned Enterprises (BUMN), Regional-Owned Enterprises (BUMD), and Private Enterprises.

BUMN and BUMD have priority in obtaining IUPK. Meanwhile, private business entities can submit auctions for WIUPK taking into consideration the area size, administrative capacity, technical and environmental management capabilities, as well as financial capabilities.

“This means that the Mining and Coal Law has set priorities in granting WIUPK. If the PP on the Implementation of Mining Business Activities has different priorities, then this is contradictory. “Even though the Minerba Law is a regulation above the PP, this is flawed,” said Ary when contacted by telephone on Sunday (2/6/2024).

This article itself is a derivative of Article 33 paragraph (3) of the 1945 Constitution, namely ‘Earth and water and the natural resources contained therein are controlled by the state and used for the greatest prosperity of the people’.

“The state in its implementation is the government and BUMN is part of the state that strives for the prosperity of the people,” he said.

In its implementation in coal mining, for example, the Minerba Law prioritizes WIUPK to PT Bukit Asam as a BUMN, or to BUMD. If not, there will be an auction with certain considerations.

Auriga Nusantara’s Director of Law Enforcement, Roni Saputra, said that government regulations should follow the above regulations, in this case, the Minerba Law. The law has limited the people or institutions entitled to obtain IUPK. If the nomenclature of religious mass organizations is not included in the regulation, the regulations below cannot be imposed it as a priority for IUPK recipients.


According to him, the government has violated the principle of lex superior derogate legi inferiori, namely that regulations at a lower level in the regulatory hierarchy must not conflict with higher regulations.

“This clearly violates the Mineral and Coal Law which was also revised during Jokowi’s own administration. “Make your own rules, break them yourself,” he said.

Apart from being contrary to the Mining and Coal Law, Roni noted contradictory articles in the government regulations themselves. PP No. 25 of 2024 does not change Article 75 of the previous regulation, PP No. 96 of 2021. Even though this article regulates the priority of offering WIUPK to BUMN and BUMD.

“In providing WIUPK as intended in paragraph (2), the Minister must first provide offers to BUMN and BUMD in a priority manner,” writes Article 75 paragraph (3) of the regulation.

This article is contradictory to the article on granting IUPK priority to religious mass organization business entities.

Political retribution

Roni said the government should demonstrate an orderly regulatory attitude. According to him, the legal principles violated by the government regarding the PP on the Implementation of Mining Business Activities show that this regulation is only implemented for political interests.

“The principle of lex superior derogate legi inferiori which has been recognized by the world community is violated at will. “The law is no longer the commander in chief in this country,” he said.

Ary also has the same opinion. According to him, religious organizations have had business units, such as schools, hospitals and minimarkets. However, religious mass organizations have never been involved in mining. If they receive a WIUPK, they must form a private legal entity, a Limited Liability Company (PT).

“This means that they only formed because they were given WIUPK, not because of their track record. “This is the same as giving an IUPK because of a favor or because you need political support, perhaps for the regional elections,” he said.

He suspects that the distribution of IUPK to religious mass organizations was planned by the government long ago and will indeed be distributed during the democratic celebrations.

Records show that on January 6 2022, Jokowi announced the revocation of 2,078 mineral and coal mining company permits. Apart from that, 192 forestry sector permits were also revoked and HGU was revoked.

Announcement of this revocation in follow his statement regarding the use of IUPK and forestry business permits for productive community groups and socio-religious organizations (including farmer groups, Islamic boarding schools, etc.), which can partner with credible and experienced companies.

“Indonesia is open to credible investors, who have a good track record and reputation, and are committed to contributing to the prosperity of the people and preserving nature,” said Jokowi at that time.

Source: Betahita