Comparative Analysis of Government Regulation Number 39 of 2025 and Article 22 of the Minerba and Coal Law on Improving the Welfare of Artisanal Miners in the Bangka Belitung Islands Province

Abstract

This study aims to analyze and compare the regulatory frameworks governing small-scale mining in Indonesia to determine which model is most effective in enhancing both the welfare and legality of artisanal miners. Traditionally, Article 22 of the Mineral and Coal Law (Minerba Law) regulates the People’s Mining License (IPR) with strict limitations on scale (a maximum of 5 hectares) within designated People’s Mining Areas (WPR). However, this model has proven ineffective in addressing illegal mining (PETI) issues and has hindered access to capital. With the enactment of Government Regulation (PP) No. 39 of 2025 on the implementation of mineral and coal mining business activities, the government introduced a new approach by granting medium-scale Mining Business License Areas (WIUP), up to 2,500 hectares, to cooperatives and small-to-medium enterprises (SMEs). The comparative analysis reveals that although the Minerba Law provides a fundamental legal basis, PP No. 39 of 2025 offers a far more pragmatic and transformative solution. This regulation not only facilitates an economic scale increase of up to 500 times but also promotes community corporatization through cooperatives. Cooperatives serve as a bridge to: (1) Integrate illegal miners (PETI) into formal governance systems, (2) Improve access to technology and capital, and (3) Strengthen responsible governance concerning environmental and occupational safety standards. Therefore, PP No. 39 of 2025 is considered superior in achieving the goals of economic sovereignty and the welfare of small-scale miners.