The Legal Character of Mining Service Contracts by State-Owned Enterprises/SOEs (Persero) in Indonesia

Wahyudi Umar; Agus Yudha Hernoko; Ghansham Anand; Rizaldy Anggriawan

doi:10.47268/ballrev.v7i1.3716

The Legal Character of Mining Service Contracts by State-Owned Enterprises/SOEs (Persero) in Indonesia

Wahyudi Umar⁽¹⁾, Agus Yudha Hernoko⁽²⁾, Ghansham Anand⁽³⁾, Rizaldy Anggriawan⁽⁴⁾

(1) Faculty of Law, Universitas Airlangga, Surabaya, Indonesia
(2) Faculty of Law, Universitas Airlangga, Surabaya, Indonesia
(3) Faculty of Law, Universitas Airlangga, Surabaya, Indonesia
(4) Faculty of Law and Political Sciences, University of Szeged, Szeged, Hungary

Corresponding Author

Abstract

Introduction: Mining service contracts executed by State-Owned Enterprises (SOEs) in the form of persero play a strategic role in Indonesia’s natural resource governance. Although formally framed as commercial contracts, these agreements involve public assets, state authority, and environmental responsibilities, creating legal complexities that challenge traditional private contract doctrines.

Purposes of the Research: This article aims to examine the legal character of mining service contracts entered by Indonesian SOEs persero and to determine whether such contracts can be classified as purely private commercial agreements or should be understood as contracts with inherent public dimensions.

Methods of the Research: This study employs normative legal research using statutory, and conceptual approaches. Legal materials are examined through document analysis of legislation, doctrinal writings, and relevant legal principles governing contracts, state owned enterprises persero, and mineral and coal mining activities.

Results / Main Findings / Novelty/Originality of the Research: The study finds that mining service contracts by SOEs cannot be categorized as ordinary private contracts. Instead, they constitute public–commercial contracts characterized by limited contractual freedom, heightened public accountability, and embedded state obligations. This conceptualization offers a refined legal framework for understanding SOE contracts in strategic sectors.

Keywords

State-Owned Enterprises Persero; Mining Service Contracts; Public–Commercial Contracts; Contract Law.

DOI

10.47268/ballrev.v7i1.3716

Published

2026-03-31

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Dublin Core		PKP Metadata Items	Metadata for this Document

1.	Title	Title of document	The Legal Character of Mining Service Contracts by State-Owned Enterprises/SOEs (Persero) in Indonesia

2.	Creator	Author's name, affiliation, country	Wahyudi Umar; Faculty of Law, Universitas Airlangga, Surabaya; Indonesia

2.	Creator	Author's name, affiliation, country	Agus Yudha Hernoko; Faculty of Law, Universitas Airlangga, Surabaya; Indonesia

2.	Creator	Author's name, affiliation, country	Ghansham Anand; Faculty of Law, Universitas Airlangga, Surabaya; Indonesia

2.	Creator	Author's name, affiliation, country	Rizaldy Anggriawan; Faculty of Law and Political Sciences, University of Szeged, Szeged; Hungary

3.	Subject	Discipline(s)

3.	Subject	Keyword(s)	State-Owned Enterprises Persero; Mining Service Contracts; Public–Commercial Contracts; Contract Law.

4.	Description	Abstract	Introduction: Mining service contracts executed by State-Owned Enterprises (SOEs) in the form of persero play a strategic role in Indonesia’s natural resource governance. Although formally framed as commercial contracts, these agreements involve public assets, state authority, and environmental responsibilities, creating legal complexities that challenge traditional private contract doctrines.Purposes of the Research: This article aims to examine the legal character of mining service contracts entered by Indonesian SOEs persero and to determine whether such contracts can be classified as purely private commercial agreements or should be understood as contracts with inherent public dimensions.Methods of the Research: This study employs normative legal research using statutory, and conceptual approaches. Legal materials are examined through document analysis of legislation, doctrinal writings, and relevant legal principles governing contracts, state owned enterprises persero, and mineral and coal mining activities.Results / Main Findings / Novelty/Originality of the Research: The study finds that mining service contracts by SOEs cannot be categorized as ordinary private contracts. Instead, they constitute public–commercial contracts characterized by limited contractual freedom, heightened public accountability, and embedded state obligations. This conceptualization offers a refined legal framework for understanding SOE contracts in strategic sectors.

5.	Publisher	Organizing agency, location	Faculty of Law, Universitas Pattimura

6.	Contributor	Sponsor(s)

7.	Date	(YYYY-MM-DD)	2026-03-31

8.	Type	Status & genre	Peer-reviewed Article

8.	Type	Type

9.	Format	File format	PDF

10.	Identifier	Uniform Resource Identifier	https://fhukum.unpatti.ac.id/jurnal/ballrev/article/view/3716

10.	Identifier	Digital Object Identifier	10.47268/ballrev.v7i1.3716

11.	Source	Title; vol., no. (year)	Batulis Civil Law Review; Vol 7, No 1 (2026): VOLUME 7 ISSUE 1, MARCH 2026

12.	Language	English=en	en

13.	Relation	Supp. Files

14.	Coverage	Geo-spatial location, chronological period, research sample (gender, age, etc.)

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