the authority to manage mineral and coal mining in Indonesia after the enactment of Act Number 3 of 2020

Development of Management Arrangements for Mineral and Coal Mining Management in Indonesia

Indonesia is a welfare state so that the state has the responsibility to provide welfare to the people, this is confirmed in the Fourth Preamble and Article 33 of the 1945 Constitution of the Republic of Indonesia (UUDNRI 1954). The state is given the authority to control the earth, water and natural resources contained therein to realize prosperity for all Indonesian people. Mineral and Coal Mining is one of the potential and strategic sectors as a state income in order to improve people's welfare. The authority to manage mineral and coal mining in 2004 was regulated in Law No. 32 of 2004 concerning Regional Government (UU Pemda) which gives mining management authority to the central government, provincial governments and district / city governments. In 2009, Law No. 4 of 2009 concerning Mineral and Coal Mining is also in line with the Local Government Law granting the authority to manage mineral and coal mining to the central government, provincial and district / city governments. In 2014, the Regional Government Law was replaced by Law No. 23 of 2014 concerning Regional Government which eliminates the authority of the regional government in managing mineral and coal mining so that the authority is only owned by the central government with the assistance of the provincial government as the representative of the central government in the regions. In 2020 through the enactment of Law No. 3 of 2020 concerning Amendment to Law No. 4 of 2009 concerning Mineral and Coal Mining also eliminates the authority of local governments in managing mineral and coal mining so that the authority is only owned by the central government with the assistance of the provincial government as the representative of the central government in the regions.

The Central Government's Authority in Management of Mineral and Coal Mining From the Economic Analysis of Law Perspektive

Indonesia as a welfare state is a choice of the Indonesian people which legally has been stipulated in the Constitution and Law No. 23 of 2014 concerning Regional Government and Law No. 3 of 2020 concerning Amendment to Law No. 4 of 2009 concerning Mineral and Coal Mining so that in the management of sectors related to the livelihoods of many people including mineral and coal mining must be managed by the central government in order to provide welfare to all Indonesian people or at least the majority of the people of Indonesia (utility theori: the greatest happiness of the greatest number of people). Welfare issues not only talk about opportunities but also talk about risks and both must be balanced (pareto efficiency / optimality: no individual or preference criterion can be better off without making at least one individual or preference criterion worse off). Mineral and coal mining is one of the strategic sectors to increase revenue for the country, but on the other hand mining is one of the "contributors" to environmental pollution in the area where the mineral and coal mining operates. Based on this, the authority of mining management by the central government is the choice of the Indonesian people (public choice) through the promulgation of the two laws above so that it can provide benefits to the people of Indonesia and not just certain regions (utility) while still considering the opportunities and risks that will be faced in the future from mineral and coal mining exploitation activities