PERHAPI Inaugurates New Leadership, Focuses on Advancing National Mining Industry

Jakarta, January 23, 2025 – The Indonesian Mining Experts Association (PERHAPI) officially inaugurated its new board for the 2024-2027 term during a ceremony in Jakarta on Tuesday (23/1). PERHAPI Chairman Sudirman Widhy Hartono reaffirmed the organization’s commitment to supporting the progress of Indonesia’s mining sector through improving workforce competencies and promoting the implementation of Good Mining Practices (GMP).

“As a professional organization, PERHAPI will continue to support the mining industry, particularly in building skilled human resources and ensuring adherence to proper mining standards,” Sudirman said in his remarks.

Sudirman highlighted several challenges currently faced by Indonesia’s mining industry, including global geopolitical dynamics, commodity price fluctuations, and negative public perception due to widespread illegal practices and legal violations in the sector.

“We still face major issues like illegal mining activities, environmental degradation, and corruption cases, all of which need to be addressed comprehensively,” he added. He also pointed out that new regulations related to environmental permits and fiscal policies have added to the operational burden of mining companies.

Another concern is the proposed revision of regulations on Export Proceeds (DHE), requiring 100% of the proceeds to be stored domestically for one year. Sudirman warned that this could adversely affect cash flow for mining businesses.

The proposed fourth revision of the Mineral and Coal Mining Law (UU Minerba), which includes giving priority to universities and UMKM for mining permits, is another major point of discussion.

PERHAPI has urged the government to reconsider this plan.

PERHAPI Vice Chairman, Resvani, emphasized that Indonesia is on the right track with its industrialization efforts, and the focus should be on developing an industrial ecosystem that can produce goods needed for the industrialization process.

Resvani argues for the need to define “the greatest prosperity of the people” as stated in Article 33 of the 1945 Constitution, through the mining sector’s contribution to economic growth, human resource development, technology mastery, sustainability, and national security.

Resvani also stated the importance of not prioritizing mining permits for universities and UMKM, saying that these sectors should be funded through the national budget, instead of pushing them to seek their own funding, since the mining industry requires high capital, advanced technology and carries high risks.

He added that if universities are to be allowed to manage mines, regulations must be put in place to protect them, while mitigating all risks.

He also highlighted the need to conserve reserves and encourage exploration, ensuring a consistent supply for the future.

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