This article examines the legal framework governing the role of local governments in the management of natural resources in Indonesia, focusing on the latest legal framework, which includes Law No. 23 of 2014 on Local Government, Law No. 1 of 2022 on Financial Relations between the Central Government and Local Governments (HKPD Law), Law No. 3 of 2020 on Minerals and Coal, and Law No. 32 of 2024 on the Conservation of Biological Natural Resources. The study covers: (1) the constitutional basis for the state’s control over natural resources under Article 33 of the 1945 Constitution; (2) the legal status of local governments as legal entities in the management of natural resources; (3) the distribution of authority between the central and local governments across various natural resource sectors; (4) the Natural Resource Revenue-Sharing Fund (DBH) mechanism as regulated in the HKPD Law and its implementing regulations; and (5) conflicts of authority and recommendations for improvement. This article argues that the trend toward centralization of authority over natural resources—particularly following the enactment of the Mining Law No. 3 of 2020—threatens the principle of regional autonomy and must be counterbalanced by strengthening the DBH mechanism and regional oversight capacity.
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