The Evolution of Mining Regulations in Indonesia: Legal Framework, Implementation, and Challenges

Abstract

Mining regulations in Indonesia have undergone significant transformations in response to political, economic, and environmental dynamics. Beginning with Law No. 11 of 1967, which introduced a framework for foreign investment in the mining sector, the regulatory landscape has evolved through various reforms, including Law No. 4 of 2009, Law No. 3 of 2020, and Law No. 2 of 2025. These laws reflect the state’s effort to strengthen control over mineral resources, promote downstream processing, and ensure environmental protection. Despite normative improvements, implementation remains challenging due to overlapping authorities, weak enforcement, and infrastructural constraints. In addition, the further regulation focuses on technical aspect, which are Ministerial Decree No. 1806/2018 and Ministerial Decree No. 1827/2018. This paper examines the historical development, key provisions, and implications of Indonesia’s mining regulations, highlighting both progress achieved and persistent issues.