Artisanal mining plays a strategic role in empowering the local economy, but its practice is often hampered by legal uncertainty, overlapping permits, and weak oversight. This study aims to examine the need for legal reform related to the People's Mining Business Permit (IUPR) so that it can function effectively as an instrument for improving community welfare. The research method used is a normative juridical approach, with an analysis of laws and regulations, including Law Number 4 of 2009 concerning Mineral and Coal Mining, amendments to Law Number 3 of 2020 in conjunction with Law Number 2 of 2025, and Government Regulation Number 96 of 2021 in conjunction with Government Regulation Number 25 of 2024. The results of the study indicate that although regulations already regulate the IUPR mechanism, its implementation is hampered by limited capital, overlapping areas, weak oversight, and suboptimal regional government coordination. Therefore, legal reform is needed, including strengthening derivative regulations, simplifying permit procedures, increasing access to financing, and synergy between central and regional governments so that the IUPR is truly able to provide legal certainty, encourage economic equality, and improve community welfare.
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