KnE Social Sciences

ISSN: 2518-668X

The latest conference proceedings on humanities, arts and social sciences.

Clusterization of Micro, Small, and Medium Enterprises in the Management of Mining License: An Indonesian National Law Perspective

Published date: Oct 31 2025

Journal Title: KnE Social Sciences

Issue title: The 8th Legal International Conference and Studies (LICS 2025): Corporate Responsibility and Environmental Law Through Economic & Business Management Practices

Pages: 153 - 162

DOI: 10.18502/kss.v10i27.20058

Authors:

Andi Aina Ilmihandiaina@unissula.ac.idFaculty of Law, Universitas Islam Sultan Agung (UNISSULA), Semarang

Abstract:

This study focuses on the management of mining license granted to MSMEs based on clustering. With the existence of MSME clustering as a strategic step to facilitate MSMEs in obtaining mining license, while encouraging economic equality and independence. In the perspective of Indonesian national law, this is regulated through the Mineral and Coal Law and its derivative regulations. This research was conducted using a normative legal approach method in the form of a legislative approach, a conceptual approach, and a case study approach. The data used were secondary data, collected through literature studies. Data analysis used a qualitative descriptive analysis method with inductive and reflective logic and the data were then described systematically according to the problems being studied. Based on the research, the main legal basis for regulating mining license is through Law Number 2 of 2025 concerning the Fourth Amendment to Law Number 4 of 2009 concerning Mineral and Coal Mining, and its derivative regulations are regulated in Government Regulation Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities, Government Regulation Number 25 of 2023 concerning Mining Areas, and Regulation of the Minister of Energy and Mineral Resources (ESDM). The clustering of MSMEs in mining license is prioritized for MSMEs, cooperatives, and religious community organizations. The licensing mechanism must obtain a recommendation from the Ministry of MSMEs before submitting a mining license to the Ministry of ESDM. Furthermore, MSMEs will be verified by the Ministry of MSMEs and meet the requirements including business capital criteria, technical capabilities, and operational capacity. The clustering of MSMEs in managing mining license is an important policy in realizing equal access and economic benefits from the mining sector, as well as improving the welfare of people in mining areas.

Keywords: clustering, licensing, mechanism

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