Minister of Cooperatives Regulation Number 12 of 2025 Issued, A Golden Opportunity for Cooperatives to Engage in Mining through the Priority Path

Introduction

On 23 December 2025, the Ministry of Cooperatives issued Minister of Cooperatives Regulation Number 12 of 2025 on the Implementation of Mineral and Coal Mining Business Activities by Cooperatives (“Permenkop 12/2025”), which took effect on 31 December 2025. This Regulation serves as a technical guideline for the Ministry of Cooperatives in administering the governance of administrative verification for the granting of Mineral Metal and Coal Mining Permit Areas (“WIUP”) through the Priority Granting mechanism to Cooperatives.

This Regulation is established to strengthen the strategic role of cooperatives in the equitable management of national natural resources. Permenkop 12/2025 is issued in response to the mandate of Government Regulation Number 39 of 2025 on the Second Amendment to Government Regulation Number 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities. The Government recognizes the need for specific empowerment to ensure that cooperatives possess adequate institutional capacity, managerial capability, and accountability before entering the high-risk and capital-intensive mining sector.

 

Key Provisions

Business Licensing and Priority Mechanism

Permenkop 12/2025 affirms that Cooperatives are now permitted to conduct mining business activities covering metallic minerals, coal, non-metallic minerals, and rocks. To carry out such activities, Cooperatives are required to hold complete Business Licensing, including a Business Identification Number (“NIB”), standard certificates, and specific permits such as a Mining Permit (IUP), Special Mining Permit (IUPK), or Small-scale Mining Permit (IPR). This Regulation also opens the Priority Granting pathway, under which Cooperatives may obtain a Metallic Mineral or Coal WIUP without participating in a competitive auction mechanism, but instead through a specially verified application process.

Administrative Verification Requirements

The Minister of Cooperatives is authorized to conduct Administrative Criteria Verification of the legality and membership of cooperatives through the Online Single Submission (“OSS”) system. Article 14 provides that applicant cooperatives must satisfy the principal administrative requirements, including:

1. Having a membership area and domicile located within the same regency/municipality as the location of the applied-for WIUP;
2. Holding an NIB with the appropriate Indonesian Standard Business Classification (KBLI) code (mineral/coal mining business sector); and
3. Being a cooperative whose legal entity status has been verified in the relevant database.

Issuance Process of the Administrative Verification Clearance Letter (SLVA)

The appointed Deputy shall conduct document verification no later than 4 (four) working days after the application is submitted through the OSS system. If the documents are complete and compliant, the Minister shall issue a Letter of Administrative Verification Clearance (“SLVA”) no later than 10 (ten) working days after the verification results are finalized. The SLVA constitutes a formal document serving as the basis for the Minister of Energy and Mineral Resources to proceed with the technical verification process for the granting of the WIUP. The documents required to be uploaded by the cooperative include:

1. Copies of the deed of establishment and legal entity approval;
2. A list of members legalized by the management to evidence the domicile of members in accordance with the mining location;
3. A business plan for metallic mineral or coal mining activities;
4. A Statement of Environmental Commitment;
5. A map of the WIUP to be managed; and
6. A Resolution of the Members’ Meeting approving the submission of the mining application.

Area Limitations and Merah Putih Cooperatives

For Metal Mineral or Coal WIUPK, Cooperatives are allocated a maximum area of 2,500 (two thousand five hundred) hectares. In addition, Permenkop 12/2025 introduces the Merah Putih Village/Sub-district Cooperative (Koperasi Desa/Kelurahan Merah Putih), namely a cooperative whose members exclusively consist of residents domiciled in the relevant village or sub-district as evidenced by National Identity Cards (KTP), which is also entitled to receive this priority treatment.

Professional Obligations and Partnership Opportunities

Cooperatives are required to employ professional personnel under formal contracts who hold competency certifications in the mining sector. In the context of business development, Cooperatives may enter into partnerships with State-Owned Enterprises (BUMN), private entities, or other cooperatives, provided that such partners hold valid business licenses in the mining sector.

 

Closing

Permenkop 12/2025 opens opportunities for cooperatives to participate in the mining sector through a priority (non-auction) pathway of up to 2,500 hectares. Cooperatives are required to ensure that their members are genuinely local residents of the regency/municipality where the mining area is located and that they maintain professionally certified management. Failure to meet these domicile or legality requirements will result in the application being rejected by the Deputy through notification in the OSS system, thereby closing the cooperative’s opportunity to obtain preferential rights in the management of natural resources within its region.