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Indonesia mandates local mining services via new ESDM decree
The Indonesian Ministry of Energy and Mineral Resources (ESDM) has issued Decree No. 365/2026, which introduces new regulations for the mining services sector. The policy mandates that holders of Mining Business Licenses (IUP) and Special Mining Business Licenses (IUPK) must prioritize the use of local mining service companies located within the surrounding regencies or cities of their operational areas.
Under the new rules, mining companies are generally prohibited from utilizing their own subsidiaries or affiliates to provide mining services without explicit approval from the Minister of ESDM. Exceptions to this restriction may be granted to companies performing specific government assignments, such as those involved in national strategic projects, the development of mineral processing facilities, or meeting domestic commodity needs.
Industry analysts, including Stockbit Sekuritas, have noted that the regulation could create policy uncertainty and impact large mining groups that rely on integrated internal operations. Conversely, the Institut Rakyat Indonesia (IRI) has welcomed the move, stating it will promote regional economic growth, increase local employment, and prevent internal corporate monopolies by ensuring mining revenue circulates within local communities.
Entities
APBI · Adaro Group · Arsari Group · Bahlil Lahadalia · Hashim Djojohadikusumo · Indonesia · Indonesian Coal Mining Association · Institut Rakyat Indonesia · Jaringan Advokasi Tambang · Ministry of Energy and Mineral Resources · PT Bumi Resources Tbk · PT Nations Petroleum
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] The Ministry of Energy and Mineral Resources issued Decree No. 365/2026 regarding mining services. news.republika.co.id · insight.kontan.co.id · katadata.co.id · www.jpnn.com
- [● 2 SOURCES] The new policy is expected to increase local economic circulation and create jobs for regional residents. news.republika.co.id · www.jpnn.com
- [○ 1 SOURCE] The regulation may create policy uncertainty and negatively impact mining groups with high operational integration. katadata.co.id
- [○ 1 SOURCE] Mining permit holders are prohibited from using their own subsidiaries or affiliates for mining services without ministerial approval. katadata.co.id
- [● 2 SOURCES] Mining permit holders must prioritize local mining service companies in the surrounding regency or city. news.republika.co.id · www.jpnn.com