Further Regulation of Equity Divestment in Coal and Mineral Mining Activities as A Manifestation of Economic Sovereignty as A Sovereign Nation

The dominance and majority foreign ownership in coal and mineral mining activities have caused various issues, such as environmental damage, socio-economic conflicts, and threats to the national industry, even jeopardizing Indonesia's economic sovereignty by turning mining into a commodity that does not directly benefit the welfare of the people. The mining sector, which should contribute to the welfare of the people and support state revenue, has not provided its fullest contribution. The regulation of divestment obligations aims to control natural resources and maximize profits, but it faces several obstacles because its implementation fundamentally contradicts the basic principles of investment law and Indonesia's international economic sovereignty. Divestment rules may potentially reduce foreign investment in the mining sector in the future and make divestment results less than optimal, potentially harming the country. In order to safeguard national interests and foreign investors while reflecting overall economic sovereignty as a sovereign nation, divestment provisions can be supplemented with additional regulations such as differentiating divestment timeframes and percentages based on commodities and placing Indonesian citizens in strategic director or commissioner positions to facilitate financial and operational control.