The Petitioner of Case No. 264/PUU-XXIII/2025 at a hearing for the material judicial review of the Mineral and Coal Mining Law, Wednesday (1/21/2025). Photo by MKRI/Panji.

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JAKARTA (MKRI) — Muhammad Mada, the Petitioner in Case No. 264/PUU-XXIII/2025 has revised his petition for the material judicial review of Article 112 paragraph (1) of Law No. 11 of 2020 on Job Creation Law, which has been amended by Law No. 2 of 2025 on the Fourth Amendment to Law No. 4 of 2009 on Mineral and Coal Mining (Minerba Law). He revised the petitums or requests in the petition.

“I respectfully request, for the sake of legal certainty, that the words ‘as well as national private business entities’ be inserted between the phrases ‘owned by foreign parties’ and ‘are required to carry out divestment,’ and that the words ‘national private business entities’ be deleted from the final clause of the paragraph,” he said Muhammad Mada before the Chief Justice Suhartoyo and Constitutional Justices Daniel Yusmic P. Foekh and M. Guntur Hamzah on the panel.

Article 112 paragraph (1) of Law No. 2 of 2025 provides as follows: “Business Entities holding Mining Business Permits (IUP) or Special Mining Business Permits (IUPK) at the Production Operation stage whose shares are owned by foreign parties shall be required to divest 51 percent (fifty-one percent) of their shares in stages to the Central Government, Regional Governments, State-Owned Enterprises (BUMN), regionally owned enterprises, and/or national private business entities.”

However, in the petitums, the Petitioner requests that the provision be reinterpreted to read: “Business Entities holding IUP or IUPK at the production operation stage whose shares are owned by foreign parties as well as national private business entities are required to divest 51 percent (fifty-one percent) of their shares in stages to the Central Government, Regional Governments, State-Owned Enterprises (BUMN), and Regionally Owned Enterprises (BUMD).”

Also read: Citizen Challenges Mining Law, Seek Limits on Private Ownership in Resource Exploitation

At the preliminary hearing on Thursday, January 8, the Petitioner contended that the provision under review has not provided limits on private ownership in economic sectors that exploit natural resources, including land, water, and the natural wealth contained therein. He stated that limiting private ownership in economic sectors that exploit natural resources, land, water, and the natural wealth contained therein is an effort to return to the spirit of the 1945 Constitution, particularly Article 33. Mineral and coal mining constitute important production units that should be controlled by the state. One form of such control is share ownership in companies managing natural resources.

Therefore, he argued, the state must limit the ownership or control of private companies, particularly in sectors involving state assets such as land, water, and the natural wealth contained therein. Constitutionally, the provision under review contradict the 1945 Constitution, and the state is also harmed because it is not the controlling authority over natural resource exploitation.

Explore case No. 264/PUU-XXIII/2025 (in Indonesian).

Author       : Mimi Kartika
Editor        : N. Rosi
Translator  : Yuniar Widiastuti (NL)

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.

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