On February 18, 2025[1], the Indonesian House of Representatives officially ratified the Draft Mineral dan Coal Law 2025 on Fourth Amendment on Law No. 4 of 2009 (“Law 4/2009”), which amends 20 articles and adds 8 new articles to Law 4/2009. The summary of the changes is as follows:

1. Adjustment to Law 4/2009 based on Constitutional Court Decision No. 37/PUU-XIX/2021 related to the meaning of space guarantees as well as contract extensions according to Constitutional Court Decision No. 64/PUU-XVIII/2020.
2. Mining Business License Area ("WIUP"), Special Mining Business License Area ("WIUPK"), or People's Mining Area ("WPR") that has been determined to be the basis for spatial and area planning and there is no change in spatial and area planning and there is no change in spatial and area planning for business actors who have obtained a Mining Business License ("IUP"), Special Mining Business License ("IUPK"), or People's Mining License ("IPR").
3. Prioritization of domestic coal needs before overseas sales (Domestic Market Obligation/DMO).
4. Metal Mineral or Coal WIUP/WIUPK is given to cooperatives, small and medium enterprises, and business entities owned by religious social organizations that carry out economic functions by granting authorization and in accordance with the following factors:

5. Providing funding for universities from a portion of the profits from the management of WIUP and WIUPK by prioritizing state-owned enterprises, region-owned enterprises, or private business entities in order to increase independence, educational services, and excellence of higher education.
6. In the context of downstreaming and industrialization, the implementation of granting WIUP/WIUPK by way of priority to state-owned enterprises or private enterprises for increasing added value in the country.
7. The government may assign state research institutes, regional research institutes, state-owned enterprises, regional-owned enterprises, and private business entities to conduct investigation and research and/or project development activities in the assignment area.
8. Business licensing services through the Mineral and Coal Mining business licensing service system through the Online Single Submission (OSS) system.
9. Implementation of an environmental audit as a requirement for the extension of the Contract of Work/Coal Mining Concession Work Agreement (PKP2B), which will be extended to IUPK as a continuation of the Contract Operations/Agreement.
10. Returning land that overlaps part or all of its WIUP to the state.
11. Increasing commitment to community development and empowerment and affirmation of protection related to community and/or indigenous rights.
12. To give the government no later than 6 (six) months to finalize the implementing regulations of the law.

Conclusion

The latest revision of Law 4/2009 seeks to prioritize national interests by regulating the production and pricing of minerals and coal, with a focus on downstreaming to enhance Indonesia's industrial capacity. This amendment also aims to align the prioritization of WIUP for various companies to boost regional economies and create educational opportunities. Furthermore, it focuses on enhancing legal certainty, clarifying definitions, and ensuring the use of coal for domestic purposes. The updated framework also addresses the alignment of spatial planning, reclamation funds, community development programs, and monitoring state revenues from the mining sector while resolving issues related to overlapping permits.

However, this article is only based on the Draft Mineral and Coal Law 2025, which is available online. At the time of publishing, the original document and the promulgation of the Draft Mineral and Coal Law 2025 are not yet available.