Mining concessions in Minerba law to scale up SMEs: Abdurrahman

Jakarta (ANTARA) - Micro, Small, and Medium Enterprises Minister Maman Abdurrahman said allocating mining business permits to small and medium enterprises (SMEs) under the Mineral and Coal Law (Minerba Law) will facilitate their expansion into larger business operations.

"I want to emphasize that this law is designed for small and medium enterprises to enable them to accelerate their growth and transition into large businesses," Minister Abdurrahman remarked after the Indonesia Economic Summit 2025 opening in Jakarta on Tuesday.

According to Abdurrahman, the law is a strategic breakthrough resulting from collaboration between the legislative and executive institutions to boost national economic growth and provide opportunities for SMEs to manage mining.

Furthermore, Abdurrahman affirmed that the Minerba Law is also a testament to the principle of fairness in the domestic business sector.

"We want to open the narrative of fairness, ensuring that the mining management opportunity is not only for large enterprises but also small and medium businesses," he stated.

However, Abdurrahman clarified that not all SMEs will qualify for mining concessions, and only those with the requisite competence and quality will be granted mining operation permits.

Earlier, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia underscored that mining land management permits will be exclusively awarded to local SMEs in mining areas rather than those based in Jakarta.

"For example, for nickel mining in North Maluku, the SMEs granted permits will be those from North Maluku, not from Jakarta," Lahadalia stated during a press conference after attending the Plenary Meeting of the Legislative Body of the House of Representatives (DPR RI) in Senayan, Jakarta, on Monday.

SMEs must have a minimum capital of Rp10 billion to manage mining land. Lahadalia expressed optimism that, by navigating various processes related to mining land management, these SMEs could evolve into larger enterprises within a year or two.

"This is what SMEs aim for—to produce large entrepreneurs from the regions. Why? To reduce inequality ratio,” he explained.