Jakarta (ANTARA) - The government's decision to allow cooperatives to manage mining sites is perfectly aligned with Article 33 of the 1945 Constitution, which mandates the capitalization of natural resources for public welfare, Cooperatives Minister Ferry Juliantono stated.

In an official statement issued in Jakarta on Tuesday, the minister highlighted that cooperatives have now been granted legal access to participate in managing mines, including those producing minerals and coal.

He noted that the policy has been formalized through Government Regulation (PP) No. 39 of 2025, which serves as the second revision of PP No. 96 of 2021 on the Governance of Minerals and Coal Mining Business Activities.

"This policy is expected to generate greater economic benefits for residents, especially those living in regions with mining potential," Juliantono said.

The new regulation introduces several key provisions designed to strengthen the role of Indonesian cooperatives in the mining sector, including Article 26C, which authorizes the cooperatives minister to administratively screen and verify cooperatives seeking mining business permits.

According to Article 26E, following verification, the minister may issue approval for granting permits to selected cooperatives for managing mineral or coal mines through the Online Single Submission (OSS) system.

Under Article 26F of the new PP, cooperatives and small and medium enterprises may be permitted to manage up to 2,500 hectares of mining area.

Minister Juliantono emphasized that the government recognizes the importance of ensuring equal rights to access and utilize mineral and natural resources for business entities beyond large corporations.

He described the new regulation as a tool for empowering cooperatives and enhancing their contribution to the people's economy.

The policy, he added, also complements the Red and White Village Cooperatives program, which has led to the establishment of around 80 thousand cooperatives in rural areas across Indonesia.

"This move will expand the activities of cooperatives and make them stronger business entities," he concluded.

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Translator: Shofi A, Tegar Nurfitra
Editor: Azis Kurmala
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