SYARIAH : Jurnal Hukum dan Pemikiran
Volume 25, No. 1, June 2025
https://doi.org/10.18592/sjhp.v25i1.18046
E-ISSN : 2549-001X

RECONSTRUCTING MINING GOVERNANCE
THROUGH MAQASID AL-SHARIA: TOWARDS
NATURAL RESOURCE MANAGEMENT PUBLIC
WELFARE ORIENTED
1

Nasrullah Nasrullah, 2 Hadin Muhjad, 3 Erlina Erlina, 4 Dadang Abdullah
1,2,3,4 University of Lambung Mangkurat, Banjarmasin, Indonesia

Email : 7878nasrullah@gmail.com1, mhmuhjad@ulm.ac.id2, erlina@ulm.ac.id3, dadang.shmh@gmail.com4
Received 26-03-2025| Revised 23-04-2025, 26-05-2025, 15-07-2025, 05-08-2025 | Accepted 22-08-2025

Abstrak: Penelitian ini menganalisis tata kelola sumber daya pertambangan di Indonesia melalui
perspektif Maqashid al-Syariah sebagai landasan normatif untuk merekonstruksi sistem perizinan
pertambangan batubara menuju model yang berorientasi pada kesejahteraan. Kerangka hukum
yang berlaku saat ini, meskipun telah mengalami reformasi legislatif melalui Undang-Undang No.
4 Tahun 2009 dan Undang-Undang No. 3 Tahun 2020, masih menghadapi persoalan degradasi
lingkungan, fragmentasi regulasi, dan distribusi sumber daya yang tidak merata. Dengan
menggunakan metode penelitian hukum normatif, kajian ini menelaah peraturan perundangundangan, doktrin hukum Islam, serta prinsip mashlahah (kemaslahatan), ‘adl (keadilan), dan hifzh
al-mal (perlindungan harta) dalam kerangka Pasal 33 Undang-Undang Dasar 1945. Evolusi historis
regulasi pertambangan, mulai dari konsesi kolonial hingga sistem terpusat IUPK, menunjukkan
adanya ketegangan yang berkelanjutan antara eksploitasi ekonomi dan kesejahteraan publik.
Penelitian ini mengajukan rekonstruksi tata kelola pertambangan yang mengintegrasikan tujuan
hukum Islam untuk menjamin keadilan, perlindungan lingkungan, dan pembangunan yang inklusif.
Dengan menginternalisasikan Maqashid al-Syariah dalam kerangka hukum, tata kelola
pertambangan dapat diarahkan kembali pada kemaslahatan publik dan pengelolaan negara yang
berkelanjutan.
Kata Kunci: maqashid al-syariah, pengelolaan pertambangan, kesejahteraan publik.
Abstract: This study analyzes the governance of mining resources in Indonesia through the lens of
Maqasid al-Sharia as a normative foundation to reconstruct coal mining licensing systems toward a
welfare-oriented model. The current framework, despite legislative reforms under Law No. 4 of
2009 and Law No. 3 of 2020, continues to grapple with environmental degradation, regulatory
fragmentation, and unequal resource distribution. Using a normative legal research method, the
research examines statutory regulations, Islamic legal doctrines, and principles of maslahah (public
benefit), ‘adl (justice), and hifz al-mal (protection of wealth) within the context of Article 33 of the
1945 Constitution. The historical evolution of mining regulation, from colonial concessions to the
centralized IUPK system, reveals a persistent tension between economic exploitation and public
welfare. This study proposes a reconstruction of mining governance that integrates Islamic legal
objectives to ensure justice, environmental protection, and inclusive development. By embedding
Maqasid al-Sharia within the legal framework, mining governance can be redirected toward the
public good and sustainable state stewardship.
Key words: maqashid al-sharia, mining governance, public welfare.

https://jurnal.uin-antasari.ac.id/index.php/syariah/article/view/18046

98 | Nasrullah Nasrullah, Hadin Muhjad, Erlina Erlina, Dadang Abdullah. Reconstructing Mining Governance
through Maqasid al-Sharia: Towards Natural Resource Management Public Welfare Oriented. pp. 97-116.

INTRODUCTION
Indonesia, a nation abundantly rich in natural resources, particularly coal, faces a
critical challenge in balancing economic exploitation with the welfare of its people1 and
environmental sustainability2. The mining sector significantly contributes to national
income and exports, with coal exports reaching 394.08 million tons in 2023. Despite this
economic contribution, the sector is simultaneously a major driver of environmental
degradation, including water quality issues, damage to forest ecosystems, and social
conflicts, especially with indigenous communities.3 The current governance framework
often prioritizes economic growth, leading to a neglect of broader societal well-being and
ecological balance.
The inherent link between natural resource management and people’s welfare is a
fundamental concern4. The extraction of non-renewable resources, if not managed
equitably and sustainably, can lead to long-term negative impacts on communities and the
environment, undermining the very notion of public benefit. This pressing situation
necessitates a re-evaluation of the normative foundations guiding resource management.
Islamic legal principles, particularly Maqasid al-Sharia5, offer a holistic and ethical
framework that emphasizes justice, public interest, and the prevention of harm.6 This study
posits that these principles can serve as a robust guide for shaping a more just, ethical, and
welfare-oriented mining policy in Indonesia.
Indonesia’s constitutional framework, specifically Article 33 of the 1945
Constitution, serves as the bedrock for natural resource management. Articles 33(2) and
33(3) explicitly mandate that “sectors of production, which are essential for the country
and affect the life of the people shall be controlled by the State” and “the land, the waters
and the natural resources contained therein shall be controlled by the State and exploited
to the greatest benefit of the people”.7 This establishes state control as a fundamental
principle aimed at maximizing public welfare. This constitutional mandate reflects a
resource nationalism that seeks to prevent external control and ensure that natural
resources serve the collective good.8
However, the precise definition and explanation of “maximum benefit of the
people” remain open to interpretation, often leading to policies that prioritize economic
gain over equitable distribution and environmental protection.9 Despite the shift from the
1 Elvie Wahyuni, “Penyelesaian Sengketa Lingkungan Hidup Di Luar Pengadilan,”

AL-IHKAM: Jurnal
Hukum & Pranata Sosial 4, no. 2 (2009): 275–92, https://doi.org/10.19105/al-lhkam.v4i2.277.
2 Hamzah Hamzah et al., “Sustainable Development of Mangrove Ecosystem Policy in South Sulawesi from
the Perspectives of Siyāsah and Fiqh Al-Bi’ah,” JURIS (Jurnal Ilmiah Syariah) 22, no. 2 (2023): 367–80,
https://doi.org/10.31958/juris.v22i2.10559.
3 Wulan Widiarti et al., “Management and Exploitation Of Mineral and Coal Mining In Indonesia: An
Analysis Of the Perspective Of Article 33 Paragraph (3) of The 1945 Constitution Republic Of Indonesia,”
Journal Evidence Of Law 4, no. 1 (2025): 111–15, https://doi.org/10.59066/jel.v4i1.1055.
4 Moh Mufid, “Fikih Konservasi Laut: Relevansi Fiqh al-Bi’ah Di Wilayah Pesisir Lamongan,” Al-Manahij:
Jurnal Kajian Hukum Islam 12, no. 1 (2018): 1–16, https://doi.org/10.24090/mnh.v12i1.1356.
5 Saim Kayadibi, “The State as an Essential Value (Ḍarūriyyāt) of the Maqāṣid Al-Sharī‘ah,” AHKAM :
Jurnal Ilmu Syariah 19, no. 1 (2019), https://journal.uinjkt.ac.id/index.php/ahkam/article/view/6256.
6 Widiarti et al., “Management and Exploitation Of Mineral and Coal Mining In Indonesia.”
7 Provita Wijayanti et al., “The Integration of Maqasid Sharia Principles on Digital Accounting Information
System in Indonesian Islamic Microfinance,” Journal of Islamic Accounting and Finance Research 7, no. 1 (2025):
107–26, https://doi.org/10.21580/jiafr.2025.7.1.25345.
8 Peter Rutland, “Resource Nationalism: Risks and Rewards,” in Handbook of Economic Nationalism (Edward
Elgar Publishing, 2022), https://www.elgaronline.com/edcollchap/book/9781789909043/book-part9781789909043-17.xml.
9 Wijayanti et al., “The Integration of Maqasid Sharia Principles on Digital Accounting Information System
in Indonesian Islamic Microfinance.”

SYARIAH : Jurnal Hukum dan Pemikiran Volume 25, No. 1, June 2025 | 99

Contract of Work (KK) regime to the Mining Business Permit (IUP) aiming to strengthen
state control, challenges persist. These include overlapping licenses, weak supervision, and
social conflicts with indigenous peoples.10 The mining sector’s significant environmental
degradation, including water quality issues and forest ecosystem damage, directly
contradicts the “greatest benefit of the people” mandate.11 Conflicts with indigenous
communities, such as in Manggarai, East Nusa Tenggara, where customary land rights are
overlooked, demonstrate a mismatch between national policies and local practices. This
indicates that economic interests often take precedence over community rights and
welfare. Furthermore, cases of corruption in license issuance and limited government
bargaining power with foreign companies highlight the failure to fully realize the
constitutional objective.12
Despite the clear constitutional mandate for state control and public welfare,
Indonesia’s coal mining licensing framework continues to face significant challenges in
achieving these objectives. The core research problem is: How can Indonesia’s coal mining
licensing framework be effectively aligned with the principles of Maqasid al-Sharia to foster
welfare-oriented resource management? This problem addresses the gap between the
normative ideals of both the Constitution and Islamic law13, and the practical realities of
mining governance in Indonesia.
● To critically analyze existing mining licensing regulations in Indonesia (specifically

Law No. 4 of 2009 and Law No. 3 of 2020) in light of the principles of Maqasid alSharia.
● To propose a normative model for welfare-based mining governance that
integrates Maqasid al-Sharia principles, ensuring justice, environmental protection,
and inclusive development.
This study contributes significantly to the academic discourse on Islamic legal
principles in public resource governance, particularly in the context of a Muslim-majority
country like Indonesia. It demonstrates how Maqasid al-Sharia can provide a robust ethical
and normative framework beyond conventional economic and legal considerations. It
offers practical policy directions for Indonesian policymakers, providing a sharia-based
perspective on justice, sustainability, and equitable resource distribution in the mining
sector. By bridging Islamic ethics with constitutional mandates, the study aims to inspire
reforms that lead to more inclusive development and environmental protection.
METHODS
This study employs a normative legal research methodology. Normative legal
research involves examining secondary sources like literature to understand laws, legal
principles, and legal history. It focuses on analyzing existing legal frameworks rather than
10 ptar2022, “History of Indonesian Gold Mining, Evolving in Colonialism Era,” Agincourt Resources, February

13, 2023, https://agincourtresources.com/2023/02/13/history-of-indonesian-gold-mining-evolving-incolonialism-era/.
11 “Normative Legal Research | PDF | Data | Analysis,” Scribd, accessed August 19, 2025,
https://www.scribd.com/presentation/452387689/NORMATIVE-LEGAL-RESEARCH-pptx.
12 Moh Rohman et al., “Methodological Reasoning Finds Law Using Normative Studies (Theory, Approach,
and Analysis of Legal Materials),” MAQASIDI Jurnal Syariah Dan Hukum 4 (December 2024): 204–21,
https://doi.org/10.47498/maqasidi.
13 Zainul Mun’im et al., “‘Ulamā’, Authority, and Political Relations: How the PCNU Jember Fatwā
Influenced Public Policy on Gold Mining in Silo?,” Journal of Islamic Law 6, no. 1 (2025): 46–66,
https://doi.org/10.24260/jil.v6i1.3605.

100 | Nasrullah Nasrullah, Hadin Muhjad, Erlina Erlina, Dadang Abdullah. Reconstructing Mining Governance
through Maqasid al-Sharia: Towards Natural Resource Management Public Welfare Oriented. pp. 97-116.

collecting new data. This approach is often referred to as library research or
theoretical/dogmatic legal research. The subject of this study is the law, which is
conceptualized as a norm or rule that applies in society and serves as a reference for
everyone’s behavior.14
The research adopts a conceptual and statutory approach, analyzing the legal
concepts embedded in Indonesian mining laws and the explicit provisions of relevant
statutes. This involves a systematic review of legislation to understand the formal legal
framework. Crucially, it integrates aphilosophical-theological analysis using Maqasid alSharia. This approach delves into the underlying wisdom, objectives, and ethical
foundations of Islamic law to evaluate and propose reforms for the positive legal system.15
It seeks to understand the “why” behind Islamic injunctions and apply these higher
objectives to contemporary issues like resource management.
As the ultimate sources of Maqasid al-Sharia, Qur’an and Hadith provide the
foundational ethical and legal principles for resource management, stewardship (amanah),
and public ownership (milkiyyah ‘ammah). Classical and Contemporary Works of Islamic
Jurisprudence offer interpretations and elaborations on Maqasid al-Sharia, maslahah, ‘adl, and
hifz al-mal, providing the theoretical depth for the Islamic legal framework.
National Mining Legislation, specifically, Law No. 4 of 2009 concerning Mineral
and Coal Mining and Law No. 3 of 2020 concerning Amendments to Law No. 4 of 2009.
These are primary legal materials in normative legal research. Article 33 of the 1945
Constitution of the Republic of Indonesia: This foundational constitutional provision is
central to understanding the state’s mandate over natural resources16. Peer-reviewed
articles, policy documents, and reports from legal scholars, economists, and
environmentalists focusing on Indonesian mining, Islamic economics, environmental
ethics, and public resource governance provide secondary legal materials and expert
opinions.
Qualitative-Descriptive Analysis technique involves interpreting and describing the
content of legal texts, historical developments, and scholarly arguments to understand the
nuances of mining governance and Islamic legal principles.
Comparative Analysis between Positive Law and Islamic Normative Principles is a
central analytical technique, comparing the provisions and effects of Indonesian mining
laws with the ethical and objective standards derived from Maqasid al-Sharia. This
comparison will highlight areas of alignment and, more importantly, areas of divergence
where the current legal framework falls short of Islamic ideals for welfare-oriented
resource management.
RESULT AND DISCUSSION
Evolution of Mining Governance in Indonesia
Indonesia’s mining governance has undergone significant transformations, reflecting
an ongoing struggle between economic imperatives and public welfare. The history reveals
a cyclical pattern where periods of strong state assertion over resources are often followed
by, or co-exist with, policies that facilitate large-scale private or foreign exploitation, driven

14 Ahmad Zuhdi et al., “Islamic Philosophy’s Approach to Environmental Ethics: An Analysis of the

Teachings of the Qur’an and Hadith,” Journal of Noesantara Islamic Studies 1 (October 2024): 198–213,
https://doi.org/10.70177/jnis.v1i4.1392.
15 Zuhdi et al., “Islamic Philosophy’s Approach to Environmental Ethics.”
16
Zuhdi et al., “Islamic Philosophy’s Approach to Environmental Ethics.”

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by the need for capital and economic development17. This recurring pattern indicates that
the “tension between economic exploitation and public welfare” is not a static problem
but a dynamic, cyclical one. Each legislative reform attempts to address perceived
shortcomings but often introduces new ones or perpetuates existing imbalances,
particularly regarding environmental protection18 and equitable distribution19.
The initial phase under colonial concession system (pre-1945) saw modest mining
activities expand under Dutch rule20. The Indische Mijnwet (IMW) regulated mineral
management, granting centralized concessions that allowed companies to freely use mines
for their sole benefit, with the government collecting fixed fees. Critically, IMW did not
regulate environmental requirements, leading to early forest destruction and land neglect.
Foreign company entry was restricted, though later amendments allowed direct contract
negotiations. The Japanese occupation (1942-1945) continued mining to support war
efforts21.
Following independence, the post-independence nationalization and state control
(1950s-1960s) period adopted a nationalistic approach, annulling pre-1949 mining rights
and nationalizing Dutch-owned companies. Government Regulation in Lieu of Law
(Perpu) 37/1960 replaced concessions with “mining authority,” initially preventing foreign
investors. This period aimed to regain state control over natural resources, aligning with
the spirit of Article 33 of the 1945 Constitution.
The re-introduction of foreign investment occurred with Contracts of Work (KK)
and Coal Mining Concession Work Agreements (PKP2B) (post-1967), regulated by Law
No. 1 of 1967 on Foreign Investment and Law No. 11 of 1967 on Mining Principles. These
were designed to attract large capital for development. These contracts often granted
extensive rights to foreign companies, raising questions about state control and public
benefit22.
The shift to Mining Business Permits (IUP) and Special Mining Business Permits
(IUPK) under Law No. 4 of 2009 and Law No. 3 of 2020 aimed to strengthen state control
by replacing KKs with IUPs. However, Law No. 3 of 2020 introduced significant changes,
centralizing licensing authority under the Ministry of Energy and Mineral Resources
(MEMR) and introducing new license types, including IUPK. This law controversially
allows automatic permit extensions for up to 20 years for existing contract holders. It also
removed limits on mining operation size and introduced incentives for integrated
operations. The shift towards centralization in Law No. 3 of 2020, while framed as
strengthening state control and simplifying bureaucracy, simultaneously creates pathways
for “nontraditional actors” (like religious organizations and universities) to gain mining

17
Bagio Kadaryanto et al., “Reconstruction of Indigenous Community Inclusion in Village Autonomy
Policy: Towards a Substantive Autonomy Model in Indonesia,” Al-Risalah: Forum Kajian Hukum Dan
Sosial Kemasyarakatan 25, no. 1 (2025): 1–19, https://doi.org/10.30631/alrisalah.v25i1.1845.
18
Abdul Basir Mohamad and Nurbazla Ismail, “Environmental Preservation and Water Pollution from
the Islamic Perspective,” Samarah: Jurnal Hukum Keluarga Dan Hukum Islam 7, no. 2 (2023): 997–
1015, https://doi.org/10.22373/sjhk.v7i2.16019.
19
Ali Muhtarom and Yuli Sutoto Nugroho, “Grants as a Model of Inheritance Prospective Distribution
in the Coastal Santri Community,” Al-Ahkam 32, no. 2 (2022): 169–88,
https://doi.org/10.21580/ahkam.2022.32.2.12557.
20
Zuhdi et al., “Islamic Philosophy’s Approach to Environmental Ethics.”
21
Timothy Webster, “Disaggregating Corporate Liability: Japanese Multinationals and World War II,”
Stanford Journal of International Law 56 (2020): 175.
22
Indonesia’s parliament has passed a mining bill that activists say will lead to unbridled exploitation
by a mining industry that already operates with impunity over environmental and social violations et
al., “With New Law, Indonesia Gives Miners More Power and Fewer Obligations,” Environmental
News, Mongabay Environmental News, May 13, 2020, https://news.mongabay.com/2020/05/indonesiamining-law-minerba-environment-pollution-coal/.

102 | Nasrullah Nasrullah, Hadin Muhjad, Erlina Erlina, Dadang Abdullah. Reconstructing Mining Governance
through Maqasid al-Sharia: Towards Natural Resource Management Public Welfare Oriented. pp. 97-116.

permits without public tender23. This raises concerns about transparency24, environmental
impact, and whether the “public good” is truly served or if it represents a new form of elite
capture. This highlights that state control per se does not automatically equate to public
welfare; the nature of that control and its beneficiaries are critical.
The table below provides a concise overview of the evolution of Indonesian mining
governance regimes.
Table 1: Evolution of Indonesian Mining Governance Regimes (Colonial to IUPK)
Regime Name

Period

Key
Legislation /
Policy
Indische
Mijnwet
(IMW)

Primary
Licensing
Mechanism
Centralized
Concessions

Colonial
Concession
System

Pre-1945

PostIndependence
Nationalization

1950s-1960s

Law 10/1959,
Perpu
37/1960

“Mining
Authority”

Contracts
of
Work (KK) &
PKP2B

Post-1967

Law
No.
1/1967, Law
No. 11/1967

Contracts of
Work (KK),
Coal Mining
Concession
Work
Agreements
(PKP2B)

Mining
Business
Permits (IUP)
&
Special
Mining
Business
Permits (IUPK)

Post-2009
(Law
No.
4/2009),
Post-2020
(Law
No.
3/2020)

Law
No.
4/2009, Law
No. 3/2020

IUP, IUPK
(including
guaranteed
extensions for
KK/PKP2B)

Key
Characteristics
Government
control
over
minerals,
private
companies
manage
exploitation;
fixed
fees
collected.
Nationalistic
approach,
annulment of
old rights, initial
prevention of
foreign
investors.
Attracted large
foreign capital
for
development;
extensive rights
often granted to
foreign
companies.
Aimed
to
strengthen state
control (IUP),
centralized
authority (Law
3/2020),
introduced
automatic
extensions,
removed size
limits,
incentives for
integrated
operations.

Noteworthy
Impacts
/
Criticisms
Minimal
environmental
regulation,
early
forest
destruction,
land neglect.

Aimed
to
regain
state
control over
resources,
aligned with
Article 33.
Raised
questions
about
state
control
and
public benefit
due to broad
concessions.
Criticized for
environmental
degradation,
reduced
community
rights,
legal
dualism,
corruption
risks,
benefiting
elites.13

Constitutional Framework: Article 33 UUD 1945
Article 33 of the 1945 Constitution stands as a cornerstone of Indonesia’s resource
management philosophy. It asserts that natural resources are “controlled by the State and
exploited to the greatest benefit of the people”. This mandate is deeply rooted in the postptar2022, “History of Indonesian Gold Mining, Evolving in Colonialism Era.”
Aditya Prastian Supriyadi et al., “Green Sukuk in Indonesia: Unraveling Legal Frameworks for
Sustainable Islamic Bonds,” El-Mashlahah 13, no. 2 (2023): 151–80, https://doi.org/10.23971/elmashlahah.v13i2.7372.
23

24

SYARIAH : Jurnal Hukum dan Pemikiran Volume 25, No. 1, June 2025 | 103

colonial desire to abolish economic colonialism and ensure national sovereignty over vital
sectors, preventing external control. The concept of “state control” is interpreted as a
means to achieve public welfare25, and it does not necessarily preclude foreign investment,
which is seen as permissible and even desirable to achieve successful exploitation of natural
resources26.
However, this interpretation has led to significant gaps between the constitutional
ideal and practical implementation. Despite the shift from the Contract of Work (KK)
regime to the Mining Business Permit (IUP) aiming to strengthen state control, challenges
persist, including overlapping licenses, weak supervision, and social conflicts with
indigenous peoples27. The mining sector’s substantial environmental degradation,
encompassing water quality issues and forest ecosystem damage, directly contradicts the
constitutional mandate for “greatest benefit of the people”. Conflicts with indigenous
communities, such as those observed in Manggarai, East Nusa Tenggara, where customary
land rights are often overlooked, highlight a fundamental disconnect between national
policies and local realities. This suggests that economic interests frequently take precedence
over community rights and welfare. Furthermore, instances of corruption in license
issuance and the government’s limited bargaining power with foreign companies
underscore the failure to fully realize the constitutional objective28.
The observed reality, where the implementation of resource management faces
persistent issues despite the constitutional ideal, reveals a profound paradox in the
operationalization of “state control.” If state control primarily serves to facilitate largescale corporate extraction, whether by domestic or foreign entities, with insufficient
regulatory oversight, transparency, and accountability, then it effectively becomes a
mechanism for elite capture or profit maximization rather than genuine public welfare.
The constitutional mandate is interpreted in a way that allows for significant private sector
involvement, but without robust mechanisms to ensure that the benefits truly accrue to
the broader populace and that environmental costs are fully internalized. Consequently,
the “greatest benefit” appears to be defined predominantly in economic terms, such as
export volumes and national income, rather than holistically to include environmental
health, social equity, and intergenerational justice.
Core Issues in Current Mining Regulation
Despite legislative efforts, several critical issues plague Indonesia’s mining sector,
hindering its ability to contribute to sustainable public welfare. These challenges form an
interconnected vicious cycle where weak governance, environmental harm, and social
injustice reinforce each other.
The mining sector is a major contributor to environmental degradation, including
water quality degradation, forest ecosystem damage, and the presence of abandoned
mining pits that have caused fatalities, particularly among children29. Nickel mining, for
instance, is directly linked to significant deforestation and water contamination. The new
Musleh Herry, “Penataan Kewenangan Pemerintah Daerah Bidang Pertanahan Di Masa Mendatang,”
De Jure: Jurnal Hukum Dan Syar’iah 6, no. 1 (2014), https://doi.org/10.18860/j-fsh.v6i1.3194.
26
“Indonesia Amends the Mining Law,”
Https://Www.Nortonrosefulbright.Com/En/Knowledge/Publications/B545e479/Indonesia-Amends-theMining-Law, accessed June 20, 2025,
https://www.nortonrosefulbright.com/en/knowledge/publications/b545e479/indonesia-amends-themining-law.
27
violations et al., “With New Law, Indonesia Gives Miners More Power and Fewer Obligations.”
28
ptar2022, “History of Indonesian Gold Mining, Evolving in Colonialism Era.”
29
Silanee Klongrua et al., “Maqasid Al-Shariah and Environmental Sustainability: An Islamic
Economic Perspective,” International Journal of Kita Kreatif 2 (February 2025),
https://doi.org/10.24815/ijkk.v2i1.44790.
25

104 | Nasrullah Nasrullah, Hadin Muhjad, Erlina Erlina, Dadang Abdullah. Reconstructing Mining Governance
through Maqasid al-Sharia: Towards Natural Resource Management Public Welfare Oriented. pp. 97-116.

Minerba Law (Law No. 3 of 2020) is criticized for not adequately addressing these issues
and for potentially accelerating environmental destruction, as it removes limits on the size
of mining operations and allows automatic permit extensions30. Issues of regulatory
fragmentation and overlapping authorities persist, leading to confusion and disputes. While
Law No. 3 of 2020 centralizes licensing authority to the central government, this shift has
been criticized for diminishing regional autonomy and potentially leading to “hyperregulation”. Weak inter-agency coordination and insufficient government oversight
contribute to non-adherence to regulations by mining companies.
The current framework often overlooks the rights and needs of local and indigenous
communities, leading to limited access for community-based mining actors and social
conflicts. Social conflicts arise from disputes over customary lands and the prioritization
of economic interests over community welfare. The new law is criticized for failing to
safeguard community well-being, providing “unrestricted rights to miners,” and even
criminalizing those who fight against mining activities under Articles 162 and 164, which
carry penalties of up to one year imprisonment or a fine of IDR 100 million. Indigenous
populations, estimated at 40-50 million, often lack designated legal status, and their
engagement is stipulated but not effectively guaranteed31.
A significant concern is legal dualism and lack of transparency. Law No. 3 of 2020
controversially guarantees the extension of Contracts of Work (KK) and Coal Mining
Concession Work Agreements (PKP2B) into Special Mining Business Licenses (IUPK) for
two subsequent 10-year periods. This provision is seen as bypassing public tender
processes, benefiting specific entities and raising concerns about political motivation and
corruption. While framed as strengthening state control, this guaranteed extension allows
foreign companies to maintain significant control over natural resources, which
constitutionally should be managed by state-owned enterprises (BUMN) or regionalowned enterprises (BUMD) for national interest and public welfare. This perpetuates a de
facto legal dualism where older, more concessionary contracts are maintained under a new
name, undermining the spirit of Article 33. The guaranteed extensions, coupled with
ambiguous reclamation obligations and administrative-only sanctions, are feared to
perpetuate environmental damage. The annulment of the requirement for a reclamation
plan before IUPK issuance is particularly problematic32.
Finally, the removal of Article 165 from the previous law, which stipulated criminal
penalties for illegal mining permits and misuse of authority, heightens corruption risks.
The prioritization of licenses to certain entities, such as religious organizations and
universities, without competitive bidding processes, further fuels concerns about
influence-peddling and bribery. These issues collectively create a system where the
mechanisms intended for public welfare are often subverted by powerful interests, leading
to “unbridled exploitation” and practices akin to “crony capitalism”33.
Islamic Legal Framework and Maqasid al-Sharia

“Mining Regulatory Reform under the Prabowo Government,” HBT, accessed August 20, 2025,
https://www.hbtlaw.com/insights/2025-05/mining-regulatory-reform-under-prabowo-government.
31
Wijayanti et al., “The Integration of Maqasid Sharia Principles on Digital Accounting Information
System in Indonesian Islamic Microfinance.”
32
Zico Junius Fernando et al., “Deep Anti-Corruption Blueprint Mining, Mineral, and Coal Sector in
Indonesia,” Cogent Social Sciences 9, no. 1 (2023): 2187737,
https://doi.org/10.1080/23311886.2023.2187737.
33
Muhamad Umar Mai et al., “Indonesian Mining Companies’ Social Responsibility Performance: The
Role of Ownership Structure and Sharia Compliance,” Cogent Business & Management 11, no. 1
(2024): 2396738, https://doi.org/10.1080/23311975.2024.2396738.
30

SYARIAH : Jurnal Hukum dan Pemikiran Volume 25, No. 1, June 2025 | 105

Maqasid al-Sharia refers to the objectives, intents, or wisdoms behind Islamic law,
fundamentally centered on promoting masalih al-’ibad (human welfare) in both this world
and the hereafter. It is a grand framework designed to “promote benefits and repel harms”.
This framework provides a powerful normative counter-narrative to purely
anthropocentric or profit-driven resource exploitation. It establishes an intergenerational
equity mandate by emphasizing that natural resources are a trust for all, including future
generations. It also implies a multi-dimensional welfare concept, where environmental
health, social justice34, and community well-being are not externalities but integral
components of maslahah. The current Indonesian laws, by focusing on economic output
and allowing practices that lead to environmental degradation and social conflict,
fundamentally violate this multi-dimensional and intergenerational welfare mandate
inherent in Maqasid al-Sharia.
The core objectives of Maqasid al-Sharia are often categorized into the Five
Necessities (Daruriyyat), fundamental values whose neglect leads to total disruption and
chaos. These are:
1. Protection of Religion (Hifz al-Din): Safeguarding beliefs, rituals, and the freedom
of belief.
2. Protection of Life (Hifz al-Nafs): Emphasizing the preservation of human life,
securing basic needs like food, marriage, shelter, drinks, and clothing. This directly
relates to the health impacts of mining and ensuring communities have access to
vital resources.
3. Protection of Mind/Intellect (Hifz al-`Aql): Preserving the human mind from
disabling influences and promoting learning and critical thinking.
4. Protection of Lineage/Offspring (Hifz al-Nasl): Ensuring the continuity and purity
of human offspring through legitimate means. This connects to the long-term health
and social well-being of communities affected by mining.
5. Protection of Wealth (Hifz al-Mal): This principle is highly relevant to resource
management and encompasses several dimensions:
a) Ownership: Allah is the ultimate owner; humans are vicegerents. Islam
balances capitalism and communism, accepting individual ownership but
within divine guidelines.
b) Acquisition and Development: Encouraging lawful earning and wealth
development through business, with unused wealth subject to zakat.
c) Protection from Damage: Prohibiting wasteful destruction, squandering, or
harmful consumption of wealth. This extends to natural resources, which are a
form of wealth.
d) Circulation: Aiming to narrow the gap between rich and poor through equal
opportunities and obligatory sharing. This is crucial for equitable resource
distribution.
e) Value Protection: Ensuring fair valuation and preventing manipulation.
Resource management in Islam is viewed as a trust (Amanah) and subject to public
ownership (Milkiyyah ‘Ammah). Humans are designated as khalifah (stewards) of the
Earth, entrusted by Allah with its care and preservation. This implies a duty to protect and
preserve the environment, not exploit it for selfish gains. Resources are seen not as
absolute possessions but as trusts requiring ethical and sustainable management35. Natural
Adi Syahputra Sirait et al., “Community Service Order Punishment: Alternatives in The Criminal
Law System From Maqāṣid al-Sharīʿah Perspective,” Nurani: Jurnal Kajian Syari’ah Dan Masyarakat
24, no. 2 (2024): 273–96, https://doi.org/10.19109/nurani.v24i2.24276.
35
Katie E. Wyer et al., “Ammonia Emissions from Agriculture and Their Contribution to Fine
Particulate Matter: A Review of Implications for Human Health,” Journal of Environmental
Management 323 (December 2022): 116285, https://doi.org/10.1016/j.jenvman.2022.116285.
34

106 | Nasrullah Nasrullah, Hadin Muhjad, Erlina Erlina, Dadang Abdullah. Reconstructing Mining Governance
through Maqasid al-Sharia: Towards Natural Resource Management Public Welfare Oriented. pp. 97-116.

resources, especially abundant minerals like coal, oil, and gas36, are considered public
property (milkiyyah ‘ammah). They are for the common benefit of all people, not for
particular privileged groups or individuals. The Prophet Muhammad (PBUH) explicitly
stated, “The Muslims are partners in three, water, pastures and fire,” a principle extended
to abundant minerals. This means individuals and the state are prohibited from possessing
them exclusively; they are secured for the benefit of current and future generations. This
concept directly challenges the concentration of mining benefits in a few hands and
emphasizes equitable distribution.
Maslahah is the ultimate goal of Sharia, ensuring both individual and collective wellbeing. It is the basis upon which Sharia is founded. Finally, ’Adl calls for the establishment
of justice, elimination of unfairness, and alleviation of privation in all matters, including
financial contracts and resource management. Islamic principles emphasize equitable
distribution of environmental goods among all communities, irrespective of religion, race,
or social group.37
The table below summarizes the key principles of Maqasid al-Sharia and their direct
relevance to resource management.
Table 2: Key Principles of Maqasid al-Sharia and their Relevance to Resource
Management
Core Relevance to
Principle
/
Specific
Definition
Resource
Concept
Application
Management
Overarching
The ultimate goal of
objective for all
Shari’ah; promoting
Prioritizing social
resource policies,
good
and
and environmental
Maslahah
(Public
ensuring
that
preventing harm for
well-being
over
Benefit/Interest)
resource
humanity in this
mere profit; holistic
exploitation
world and the
impact assessment.
genuinely benefits
hereafter.
the collective.
Fair
licensing
processes,
Establishment of Ensuring equitable
transparent revenue
fairness, elimination distribution
of
sharing, protecting
‘Adl (Justice)
of unfairness, and resource benefits
marginalized
alleviation
of and burdens among
communities,
privation.
all stakeholders.
environmental
justice.
Safeguarding wealth Treating
natural
Preventing wasteful
from
damage, resources as a form
extraction, ensuring
Hifz
al-Mal ensuring its lawful of collective wealth
reclamation,
fair
(Protection
of acquisition,
that
must
be
taxation, combating
Wealth)
development,
preserved,
corruption,
circulation,
and developed
promoting
local
value protection.
sustainably,
and
Nita Triana and Farah Nuril Izza, “The Perspective of Islamic Law on the Application of the Polluter
Pays Principle in Indonesian Environmental Law,” Al-’Adalah 17, no. 2 (2020): 359–82,
https://doi.org/10.24042/adalah.v17i2.8223.
37 Fahru Azwa Mohd Zain et al., “Integrating Environmental, Social and Governance (ESG) Principles with
Maqasid Al-Shariah: A Blueprint for Sustainable Takaful Operations,” International Journal of Islamic and Middle
Eastern Finance and Management 17, no. 3 (2024): 461–84, https://doi.org/10.1108/IMEFM-11-2023-0422.
36

SYARIAH : Jurnal Hukum dan Pemikiran Volume 25, No. 1, June 2025 | 107

distributed
equitably.

economic
participation.

Critical Evaluation of Current Laws: Minerba Law and its Limitations

The Minerba Law (Law No. 4 of 2009, amended by Law No. 3 of 2020) has been
widely criticized for its shortcomings in delivering public welfare, environmental
protection, and community rights, despite its stated purpose of supporting downstream
processing and implementing constitutional court decisions. The law, in its pursuit of
economic “development” primarily through investment and industrialization, has
inadvertently created a “developmental paradox.” This paradox highlights that the means
of development, such as attracting foreign capital and streamlining permits for large
players, can directly contradict the ends of development, which should encompass public
welfare, environmental sustainability, and social justice. The current legal framework, by
prioritizing investor certainty and large-scale operations, creates a system where the state’s
role shifts from a trustee for public welfare to a facilitator of capital accumulation, often
at the expense of its own constitutional mandate and the ethical imperatives of Maqasid
al-Sharia. The process of its enactment, with amendments approved rapidly and with
minimal transparency, further suggests a process driven by specific interests rather than
comprehensive public good38.
The law presents heightened corruption risks due to the removal of Article 165,
which previously stipulated criminal penalties for illegal mining permits and misuse of
authority. This directly undermines the principle of ‘adl (justice) and fair governance.
Furthermore, the law is criticized for granting “unrestricted rights to miners” and failing
to safeguard community well-being. Indigenous populations, despite their significant
numbers (estimated at 40-50 million), lack designated legal status, leading to conflicts over
customary lands. The criminalization of obstruction to mining activities under Articles 162
and 164 further suppresses community protests, violating principles of justice and
participation. While promoting downstream industrialization, the law reinforces economic
dependence on extractive industries, potentially hindering economic diversification and
increasing instability. The influx of foreign labor can limit job opportunities for local
populations, leading to cultural alienation and exacerbating socioeconomic challenges. This
contrasts with Hifz al-Mal’s principle of wealth circulation and equitable distribution.
Critically, the law’s formulation process lacked public aspirations and participation,
occurring during the COVID-19 pandemic, raising questions about its democratic
legitimacy and responsiveness to societal needs39.
The Minerba Law is associated with increased environmental degradation and the
safeguarding of violations in mining operations. Enforcement mechanisms are deemed
insufficient, leading to widespread deforestation, water contamination, and ecosystem
damage, particularly from nickel mining. Persistent environmental disasters are linked to
improper application of Environmental Impact Analysis (AMDAL) processes, and many
companies fail to meet their responsibilities for environmental rehabilitation, like sea
fence40. This directly contradicts the amanah (trust) and environmental stewardship
principles of Islam.

Mustafa Omar Mohammed and Fauziah Md Taib, “Developing Islamic Banking Performance
Measures Based on Maqasid Al-Shari’ah Framework: Cases of 24 Selected Banks,” Journal of Islamic
Monetary Economics and Finance 1, no. 1 (2015): 55–78, https://doi.org/10.21098/jimf.v1i1.483.
39
HBT, “Mining Regulatory Reform under the Prabowo Government.”
40
Musleh Harry et al., “Sea Fence and Public Policy: Impact on the Welfare of Fishermen Families in
Tangerang, Indonesia,” El-Usrah: Jurnal Hukum Keluarga 8, no. 1 (2025): 660–77,
https://doi.org/10.22373/65rf2m16.
38

108 | Nasrullah Nasrullah, Hadin Muhjad, Erlina Erlina, Dadang Abdullah. Reconstructing Mining Governance
through Maqasid al-Sharia: Towards Natural Resource Management Public Welfare Oriented. pp. 97-116.

Law No. 3 of 2020 controversially guarantees the extension of Contracts of Work
(KK) and Coal Mining Concession Work Agreements (PKP2B) into Special Mining
Business Licenses (IUPK) for two subsequent 10-year periods. This provision is widely
regarded as the most anticipated change in the amendment. This creates significant
implications of legal dualism. Critics argue these bypasses public tender processes,
benefiting specific entities and raising concerns about political motivation and
corruption41. While framed as strengthening state control (as IUPK theoretically gives the
state a higher position), the guaranteed extension allows foreign companies to maintain
control over natural resources, which constitutionally should be managed by state-owned
enterprises (BUMN) or regional-owned enterprises (BUMD) for national interest and
public welfare. This perpetuates a de facto legal dualism where older, more concessionary
contracts are maintained under a new name, undermining the spirit of Article 33.
Furthermore, the guaranteed extensions, coupled with ambiguous reclamation obligations
and administrative-only sanctions, are feared to perpetuate environmental damage. The
annulment of the requirement for a reclamation plan before IUPK issuance is particularly
problematic42.
The table below provides a direct comparison, illustrating the failures of the current
law in meeting its stated and implied objectives.
Table 3: Shortcomings of Law No. 3 of 2020 (Minerba Law) vs. Welfare-Oriented
Goals
Contradiction
with
Specific Provision Constitutional /
Area
of
Impact
/
/ Outcome of Law Islamic
Ideals
Shortcoming
Consequence
No. 3 / 2020
(e.g., Article 33,

Maqasid al-Sharia

Public Welfare

Removal
of
criminal penalties
for
misuse
of
authority (Art. 165).

Community
Rights

“Unrestricted rights
to
miners”;
criminalization of
protests (Art. 162,
164).

Environmental
Protection

Automatic permit
extensions; removal
of
size
limits;
inadequate
enforcement.

principles)
Violates
‘Adl
(justice)
and
transparency
principles.
Undermines
Maslahah
(public
benefit),
‘Adl
(justice), and Hifz alNafs (protection of
life).
Violates
Amanah
(trust
/
stewardship), Hifz
al-Mal (protection
of wealth), and Hifz
al-Nafs (protection
of life).

Heightened
corruption risks in
licensing.
Reduced
community rights,
social
conflicts,
displacement, lack
of legal status for
indigenous peoples.
Increased
environmental
degradation, water
/ forest damage,
abandoned
pits,
persistent disasters.

Environmental Justice – The Core Essence of Islam | EcoMENA, EcoIslam, January 10, 2025,
https://www.ecomena.org/environmental-justice-islam/.
42
Sri Atin and Mohamad Rokhimawan, “The Grass Roots Curriculum Model in Basic Education
through Self-Development Programs,” Jurnal Ilmiah Sekolah Dasar 8 (June 2024): 350–60,
https://doi.org/10.23887/jisd.v8i2.64488.
41

SYARIAH : Jurnal Hukum dan Pemikiran Volume 25, No. 1, June 2025 | 109

Transparency
/Competition

Guaranteed
extension of KK /
PKP2B to IUPK
without auction.

Regional
Autonomy

Centralization of
licensing authority
to
central
government.

Contradicts
‘Adl
(justice)
and
principles of fair
competition;
undermines state
control for public
good.
Undermines
principles
of
decentralized
governance
and
local
community
participation.

Circumvention of
public
tender,
benefits
specific
entities, perpetuates
foreign
control,
corruption
concerns.
Diminished
regional autonomy,
“hyper-regulation,”
reduced
local
oversight.

Applying Maqasid al-Sharia to Mining Governance
Integrating Maqasid al-Sharia into mining governance requires a fundamental
paradigm shift from a purely economic-centric model to one that prioritizes holistic
welfare, justice, and sustainability. The current laws, despite constitutional mandates,
effectively grant “unrestricted rights to miners” and prioritize economic returns. These
contrasts sharply with the Maqasid paradigm, where Amanah and Milkiyyah ‘Ammah
fundamentally redefine the relationship with natural resources. Resources are a trust from
God, not merely commodities to be owned and exploited. This implies a profound shift
from a “permission to exploit” model to a “stewardship with accountability” model. Under
Maqasid al-Sharia, a mining license is not merely a right granted by the state for profitmaking, but a delegation of stewardship over a public trust 43. This delegation comes with
inherent responsibilities to maintain mizan, ensure maslahah, and uphold ‘adl. Therefore,
the licensing framework should embed these responsibilities as primary conditions, with
severe consequences for their violation, rather than merely focusing on administrative and
financial compliance. This also means that the state, as the primary trustee, has a moral
and religious obligation to rigorously oversee and enforce these ethical parameters, not just
collect revenue.
Maslahah should be the overarching objective of all mining policies and licensing
decisions44. This means moving beyond mere profit generation to actively promoting good
and preventing harm. Istislah provides flexibility for contemporary challenges like
environmental degradation and social equity in mining. It allows for the development of
new regulations that serve the public good, even if not explicitly detailed in classical texts,
as long as they align with the general spirit of Sharia. Central to this approach are
environmental ethics rooted in Tawhid, Khilafah, Mizan, and Amanah. This implies
responsible resource use, sustainability, and harmonious coexistence with nature. Mining
activities must adhere to strict environmental protection measures, including
comprehensive impact assessments, rehabilitation, and pollution control, to preserve the
intrinsic value of nature as God’s creation. Wasteful consumption and wanton destruction
are explicitly discouraged45.

Muhammad Shohibul Itmam et al., “Legal Politics of Mining Spatial Planning in Sumenep District:
Maqāṣid Syarī’ah Overview,” Ijtihad : Jurnal Wacana Hukum Islam Dan Kemanusiaan 25, no. 1
(2025): 1–27, https://doi.org/10.18326/ijtihad.v25i1.1-27.
44
Mohammed and Taib, “Developing Islamic Banking Performance Measures Based on Maqasid AlShari’ah Framework.”
45
Mohammed and Taib, “Developing Islamic Banking Performance Measures Based on Maqasid AlShari’ah Framework.”

43

110 | Nasrullah Nasrullah, Hadin Muhjad, Erlina Erlina, Dadang Abdullah. Reconstructing Mining Governance
through Maqasid al-Sharia: Towards Natural Resource Management Public Welfare Oriented. pp. 97-116.

Justice in licensing demands several key considerations. Fair distribution is
paramount, ensuring that the benefits of mining are distributed equitably among all
segments of society, not concentrated in the hands of a few. This aligns with Hifz al-Mal’s
principle of wealth circulation. This includes prioritizing local companies and Small and
Medium Enterprises (SMEs). Transparency in the licensing process is crucial; it must be
open to public scrutiny and free from corruption46. This directly counters the current issues
of influence-peddling and non-competitive permit allocation. Furthermore, accountability
is indispensable. Mining companies and government bodies must be held accountable for
their social and environmental performance. Strict sanctions for violations, including
environmental damage and neglect of community rights, are necessary. This extends to
ensuring a “100 percent success rate” in post-mining reclamation47.Finally, community
participation is vital. Genuine engagement and involvement of local and indigenous
communities in mining policy and licensing decisions are crucial. Their rights, especially
over customary lands, must be recognized and protected. The concept of hima (protected
areas) offers a compelling model for community-based environmental management48.
A normative model for welfare-based mining governance, rooted in Maqasid alSharia, would involve a comprehensive redesign of licensing mechanisms and a
reorientation of policy objectives. This represents a shift from reactive damage control to
proactive ethical stewardship. The current laws are largely reactive, attempting to manage
negative impacts through post-mining reclamation requirements and fines for violations.
However, these measures are often insufficient or poorly enforced. In contrast, Maqasid alSharia emphasizes maslahah and daf’ al-mafasid proactively.49 It is about ensuring a “good
life” (hayah al-tayyibah) and falah (welfare).50 This means that a Maqasid-oriented framework
shifts the focus from merely mitigating harm to actively fostering positive social and
environmental outcomes from the outset of mining operations. It implies a move from a
“license to operate” to a “license to serve” model, where the privilege of resource
extraction is contingent upon demonstrable and continuous contribution to the holistic
well-being of society and the environment, aligning with the amanah and milkiyyah ‘ammah
principles. This proactive ethical stewardship would fundamentally transform how mining
projects are conceived, approved, and managed throughout their lifecycle.
Prioritizing Maslahah in Permit Allocation is essential. Instead of automatic
extensions or non-competitive grants to specific entities like religious organizations and
universities, licensing should prioritize entities that demonstrate a clear commitment and
capacity to deliver holistic public welfare, including robust environmental protection,
genuine community development, and equitable benefit sharing. This could involve
Maqasid-based social and environmental impact assessments as primary criteria, not just
economic projections. Licenses should be viewed as conditional and revocable trusts
(amanah), subject to rigorous monitoring and immediate revocation if Maqasid principles
Olexandr Prysyazhnyuk et al., “Re-Evaluating The Views in Combating Corruption Criminal
Offenses Under Martial Law,” Syariah: Jurnal Hukum Dan Pemikiran 24, no. 2 (2024): 285–98,
https://doi.org/10.18592/sjhp.v24i2.14876.
47
Mohammed and Taib, “Developing Islamic Banking Performance Measures Based on Maqasid AlShari’ah Framework.”
48
Ahmad Khotim, “Principles of Ownership and Distribution of Mining Products in the Perspective of
Islamic Law: A Historical Review of the Time of the Prophet Muhammad SAW,” Al-Mawaddah:
Jurnal Studi Islam dan Hukum Keluarga (Ahwal Al-Syakhsiyyah) 2, no. 1 (2025): 34–37,
https://doi.org/10.61181/al-mawaddah.V2i1.519.
49 Agung Dwi Sutrisno and Meti Astuti, “Crony Capitalism Practices In Indonesia’s Mining Industry: A
Critical Study From The Islamic Economic Perspective,” Mukaddimah Jurnal Studi Islam 9 (December 2024):
252–70.
50 “Public Property According to the Hanafi School | Hizb Ut-Tahrir Australia,” accessed July 23, 2025,
https://www.hizb-australia.org/2017/03/public-property-according-to-the-hanafi-school/.
46

SYARIAH : Jurnal Hukum dan Pemikiran Volume 25, No. 1, June 2025 | 111

(e.g., hifz al-nafs, hifz al-mal through environmental protection and equitable distribution)
are violated. The “100 percent success rate” for post-mining reclamation should be strictly
enforced with robust penalties, not just administrative ones. Furthermore, communitycentric licensing mechanisms should be developed to facilitate and prioritize communitybased mining actors, cooperatives, and local enterprises, ensuring their access and benefit
from resources. This aligns with the milkiyyah ‘ammah principle of resources for all. Where
large-scale operations are necessary, a transparent and competitive bidding process must
be maintained, with clear criteria that include social and environmental track records, not
just financial offers.51
Islamic legal thought offers significant avenues for sustainable policy innovation.
Environmental conservation fatwas (religious edicts) can serve as powerful tools to guide
human behavior towards sustainable development practices, potentially more effectively
than limited bureaucratic capacity. Islamic finance instruments such as green sukuk and
waqf can be leveraged to finance sustainable mining practices, environmental rehabilitation,
and community development projects. Waqf, with its principles of perpetuity and
irrevocability, is particularly suited for long-term environmental and social welfare projects.
Moreover, aligning Environmental, Social, and Governance (ESG) principles with Maqasid
al-Sharia provides a robust framework for ethical finance and responsible business practices
in mining. Studies indicate that Sharia compliance has been shown to improve Corporate
Social Responsibility (CSR) performance in Indonesian mining companies.52
Bridging Islamic law with constitutional mandates requires a multi-faceted approach
involving legislative, institutional, and collaborative reforms. The Minerba Law (Law No.
3 of 2020) needs significant amendments to align with Article 33 of the 1945 Constitution
and Maqasid al-Sharia. This includes reintroducing robust criminal penalties for
environmental damage and misuse of authority, ensuring that the legal framework acts as
a deterrent rather than an enabler of harmful practices. The controversial guaranteed
extensions for KK and PKP2B into IUPK should be re-evaluated to ensure transparency,
competitive bidding, and alignment with the principle that natural resources are for the
collective benefit, not perpetual private gain. Furthermore, legislative provisions should
explicitly recognize and protect the customary land rights of indigenous communities,
ensuring their free, prior, and informed consent for any mining activities on their lands.
Government institutions involved in mining governance, particularly the Ministry of
Energy and Mineral Resources (MEMR) and environmental agencies, must strengthen
their oversight and enforcement capabilities. This requires enhancing inter-agency
coordination, improving technical expertise in environmental monitoring and impact
assessment, and establishing independent auditing mechanisms. Measures to combat
corruption within the licensing process, such as transparent public registries of permits and
clear criteria for allocation, are essential. The role of regional governments in overseeing
local mining impacts should also be strengthened, reversing the hyper-centralization that
has diminished local accountability. Effective welfare-oriented resource management
necessitates collaboration among various stakeholders. This includes fostering
partnerships between government, mining companies, local communities, civil society
organizations, and academic institutions. Islamic organizations and scholars can play a
crucial role in disseminating environmental ethics and Maqasid al-Sharia principles to both
industry and communities, promoting a shared understanding of responsible stewardship.
Leveraging Islamic social finance instruments, such as waqf and zakat, can provide
alternative funding mechanisms for environmental rehabilitation, community
development, and sustainable livelihood programs in mining-affected areas. This
“What You Need to Know About Indonesia’s Revised Mining Law,” accessed July 23, 2025,
https://jakartaglobe.id/business/what-you-need-to-know-about-indonesias-revised-mining-law.
52 Zuhdi et al., “Islamic Philosophy’s Approach to Environmental Ethics.”
51

112 | Nasrullah Nasrullah, Hadin Muhjad, Erlina Erlina, Dadang Abdullah. Reconstructing Mining Governance
through Maqasid al-Sharia: Towards Natural Resource Management Public Welfare Oriented. pp. 97-116.

collaborative approach can build trust, facilitate conflict resolution, and ensure that
resource management truly serves the holistic well-being of the Indonesian people and
their environment.
CONCLUSIONS
Indonesia’s mining governance, particularly in the coal sector, stands at a critical
juncture, necessitating a profound realignment with both its constitutional ideals and
Islamic normative ethics. The historical trajectory of mining regulation reveals a persistent
tension between economic exploitation and public welfare, a tension exacerbated by
current legislative frameworks that fall short in ensuring justice, environmental protection,
and equitable resource distribution. The analysis of Law No. 3 of 2020 highlights
significant shortcomings, including heightened corruption risks, environmental
degradation, reduced community rights, and a problematic legal dualism that perpetuates
the control of resources by a few, often at the expense of the many. Maqasid al-Sharia offers
a holistic, justice-centered framework that can serve as a robust normative foundation for
reconstructing Indonesia’s mining governance. By emphasizing principles such as maslahah,
‘adl, hifz al-mal, amanah, and milkiyyah ‘ammah, Islamic law provides a comprehensive ethical
compass. This framework shifts the paradigm from a mere “permission to exploit” to a
“stewardship with accountability,” demanding that resource extraction actively fosters
positive social and environmental outcomes, rather than merely mitigating harm. It
inherently mandates intergenerational equity and a multi-dimensional concept of welfare
that extends beyond economic indicators to encompass environmental health, social
justice, and community well-being.
Future reforms in Indonesia’s mining sector should proactively incorporate Islamic
legal reasoning. This means redesigning licensing mechanisms to prioritize maslahah
through transparent, competitive, and community-centric processes, ensuring that licenses
are conditional trusts subject to rigorous monitoring and severe penalties for violations.
Leveraging Islamic finance instruments and promoting ethical governance aligned with
ESG principles can further support sustainable practices. Ultimately, by bridging Islamic
ethics with constitutional mandates, Indonesia can forge a path towards inclusive
development, robust environmental protection, and truly equitable mining management
that serves the long-term prosperity of its people and preserves its natural heritage for
future generations.

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