Regulations
Industry players cautioned that the policy must be clearly communicated to avoid misinterpretation that could undermine business confidence.
Illegal sand quarries are seen on April 22. (AFP/Chaideer Mahyuddin)
The government has clarified that the controversial profit-sharing requirement between mining companies and universities applies only to priority mining permit holders that partner with higher education institutions, not to all operators.However, industry players cautioned that the policy must be clearly communicated to avoid misinterpretation that could undermine business confidence.
The provision, stipulated in Energy and Mineral Resources Ministerial Regulation No. 7/2026 on risk-based business activity standards, signed on June 8, requires at least 60 percent of a miner's net profit to be allocated to universities through a priority distribution mechanism from the start of production.
