Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that the Renewable Energy Bill is no longer a priority. (Photo: Bahlil Lahadalia's Faceook)
Indonesia’s recent amendment to its Mining Law has ignited heated debate and is expected to impact the country’s renewable energy development.
Minister of Energy and Mineral Resources, Bahlil Lahadalia, recently stated that increasing oil and gas production is a priority, suggesting that related legislation could take precedence over the Renewable Energy Bill, which he declared is “not a priority.”
Indonesian parliament fast-tracked Mining Law revision
On Feb. 18, Indonesia’s House of Representatives (DPR) passed the fourth amendment to the Mineral and Coal Mining Law in an unusually expedited manner. The revision expands priority mining rights to religious organizations, small and medium enterprises (SMEs), and cooperatives, while also allowing universities to receive funding from state-owned or private mining companies for research. However, the move has sparked widespread controversy, with public debate continuing for over a week.
The House’s Legislative Body (Baleg), which led the amendment push, argued that easing SME access to the mining sector would inject new momentum into the industry. The revision aligns with the government’s long-standing goals of developing Indonesia’s domestic mineral processing sector and reducing raw material exports. Given Indonesia’s rich mineral resources, lawmakers hope to attract more foreign investment in green industries such as electric vehicle (EV) batteries, solar panels, and green steel.
However, concerns have emerged over the rushed approval process, which bypassed standard legislative procedures during the parliamentary recess. Critics accuse lawmakers of a lack of transparency and even suspect political motives behind the amendment.
Expanding mining access has also raised fears of increased environmental degradation, while allowing mining companies to fund university research has sparked concerns over academic independence. The controversy has further fueled the student-led "Dark Indonesia" protests, which oppose the government’s opaque decision-making.
Thousands of students protested nationwide, culminating in a rally against Prabowo’s budget cuts to fund free meals and a sovereign wealth fund. (Photo: WALHI' X)
Green energy delayed as Indonesia prioritizes oil and gas
On Feb. 24, scholars and environmental activists issued a joint statement warning that the amendment could lead to research being skewed toward commercial interests. Many universities are already facing budget cuts, making them more susceptible to financial influence from the mining industry. This, in turn, could marginalize renewable energy research and hinder the development of sustainable industries.
Meanwhile, the long-debated New and Renewable Energy Bill remains stalled in parliament, with its implementation now facing further delays. When recently asked about the bill’s progress, Minister Bahlil plainly stated that it is no longer a priority. He suggested that the House may instead focus on deliberating the Oil and Gas Law, though he did not provide specific details.
For the past four years, the Renewable Energy Bill has been a key legislative agenda item in Indonesia, addressing issues such as localized renewable energy development and power wheeling scheme of independent power producers. However, its progress has been slow, with lawmakers failing to reach a consensus on the green electricity framework in the previous legislative session. Now, the bill’s future appears even more uncertain.
Source: Indonesia Business Post, Jakarta Post, ASEAN Briefing, Tanahair
