MK bars direct award of mining permits to mass groups, cooperatives

The Mahkamah Konstitusi ruled that mining business permits for religious mass organizations, cooperatives, UMKM, and universities cannot be granted through direct appointment. In Decision No. 160/PUU-XXIII/2025, the court said the phrase “pemberian prioritas” in the Minerba Law cannot be read as an automatic right to obtain a permit. Energy and Mineral Resources Minister Bahlil Lahadalia said the government will prepare implementing rules in the form of a ministerial regulation or decree so that priorities remain in effect under a more transparent and accountable governance system. He also said only cooperatives that meet the requirements, including being located in mining areas, can receive priority. According to Bahlil, the MK ruling is not retroactive, so permits already in operation will not be revoked.