The Indonesian government has officially signed Government Regulation (PP) No. 39 of 2025, amending the earlier PP 96/2021, to allow cooperatives to manage mineral and coal mining operations. Under this new regulation, cooperatives—particularly those in mining-rich communities—can now be granted mining permits (WIUP) to explore and exploit mineral and coal resources. The regulation includes specific provisions: cooperatives must pass administrative verification under Article 26C, and once approved, they receive priority in permit issuance under Article 26E. The maximum allowable mining area for cooperatives or small and medium enterprises is capped at 2,500 hectares (Article 26F).
This shift is intended to broaden economic participation and decentralize control of mining resources, ensuring that benefits reach local communities rather than being concentrated in large corporations. The Minister of Cooperatives, Ferry Juliantono, emphasized the hope that this change will encourage cooperatives in villages and districts to take on mining ventures, boosting grassroots economic growth. He also pointed out that regions with strong mining potential no longer have to rely solely on big companies for resource development.
