Mining Permits at Risk: Religious Groups Face Ownership Deadline

Flooring Guide by Cinvex – JAKARTA — Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, issued a crucial reminder to religious community organizations (Ormas Keagamaan) holding mining business permits (IUPs). He emphasized that these organizations must maintain a minimum 67% share ownership in the business entities (BUs) they establish for mining operations.

Tanjung explicitly stated that failure to meet this 67% share ownership threshold by religious organizations in their mining-managing business entities could result in the revocation of their IUPs.

This stringent requirement, according to Tanjung, aligns with the latest regulatory framework: Minister of Energy and Mineral Resources Regulation Number 18 of 2025 (Permen ESDM 18/2025). This pivotal regulation was officially enacted by ESDM Minister Bahlil Lahadalia on November 14, 2025.

: ESDM Focuses on Reserves and Investment Commitment, IUPK Extensions Tightened

Explaining the rationale behind this policy at the Ministry of Energy and Mineral Resources office on Friday, November 28, 2025, Yuliot elaborated, “Religious organizations engaged in these economic activities contribute significantly to community development from an economic standpoint. If their share ownership is minimal, the core objective of this regulation – to ensure meaningful economic contributions – will not be achieved.”

Consequently, Yuliot emphasized that these shareholdings are subject to strict ownership limits and are explicitly non-transferable.

: : Chairman of PP Muhammadiyah Speaks Up on WIUP After Ormas Mining Management Rules Issued

“This provision effectively locks in the ownership; any attempt to transfer shares will lead directly to the revocation of the IUP,” he firmly asserted, underscoring the government’s commitment to the rule.

Article 28, paragraph 1 of Permen ESDM 18/2025 further details the scope of potential mining areas. It stipulates that business entities owned by religious organizations are eligible to apply for a Metallic Mineral Mining Business Permit Area (WIUP) covering a maximum of 25,000 hectares (ha) and a Coal WIUP with a maximum area of 15,000 ha.

To secure these WIUPs with priority status, business entities belonging to religious organizations must meticulously fulfill a comprehensive set of administrative requirements, technical specifications, and a formal statement of commitment.

Requirements for Religious Organization-Owned Business Entities to Manage Mining Operations
Administrative Requirements:

1. The business entity must be structured as a limited liability company (perseroan terbatas persekutuan modal).
2. At least 67% of the business entity’s shares must be owned by a religious organization officially registered within the government-managed religious organization information system.
3. Possession of a Business Identification Number (NIB) that specifically covers metallic mineral or coal mining activities, aligning with the relevant Indonesian Standard Industrial Classification (KBLI) codes for the commodity applied for.
4. The business entity must be owned by a religious organization with a national scope of activities, in full compliance with prevailing laws and regulations concerning religious organizations.
5. Ownership by a religious organization committed to managing economic resources, preserving the environment, and upholding the norms, values, ethics, and culture inherent in society.
6. The business entity must be owned by a religious organization whose legal entity status has been thoroughly verified within the database of religious organization-owned business entities, managed by the ministry overseeing legal affairs.

Technical Requirements:

1. Possession of expert personnel who hold valid competency certificates in the fields of mining and/or geology.
2. A comprehensive work and financing plan for the entire duration of exploration activities.

Commitment Statement Requirements:

1. A demonstrable willingness to provide compensation for data and information.
2. An explicit pledge not to transfer the IUP to any other party.
3. A commitment not to collateralize the IUP, including its associated mining commodities, to any other entity.
4. A guarantee that the religious organization’s minimum 67% share ownership composition will not be diluted for the entire period they hold the IUP.
5. An unwavering commitment to conduct all mining business activities in strict adherence to sound mining engineering principles and prevailing regulatory provisions.