Judicial Perspective on Dispute Settlement in the Energy and Mining Sectors

Abstract

Natural resources are all kinds of wealth contained within the earth, both biotic and abiotic, that can be utilized to meet human needs and well-being. Natural resources are classified into two types: renewable and non-renewable. One example of a non-renewable natural resource is mining. These include oil and natural gas, coal, gold, silver, and copper. The results of mining are controlled by the state. Conflict in the energy and mining sectors is an unavoidable reality due to the highly complex interests of the various parties involved. These interests include the economic interests of mining companies, government regulations and policies, the rights of local communities, and claims to land and resources by indigenous groups. This sector often operates in sensitive areas, both ecologically and socioculturally, so the potential for friction is very high. Furthermore, companies are expected to develop holistic conflict management strategies, by establishing transparent two-way communication, establishing long-term partnerships with communities, and respecting cultural values and local rights. The government also plays a crucial role in creating fair regulations and ensuring legal certainty in conflict resolution. A normative doctrinal approach, or normative legal research, is essentially an activity that examines the internal aspects of positive law (to resolve existing problems). The study's findings indicate that while litigation remains the primary option, there is a growing trend toward the use of alternative dispute resolution (ADR) to achieve more efficient and sustainable solutions. This research recommends strengthening the capacity of judges in handling energy and mining cases and developing regulations that are more responsive to the dynamics of this sector. The government acts as a facilitator, regulator, and law enforcer, while independent institutions such as BANI provide alternative dispute resolution channels through arbitration. Courts systematically resolve disputes through litigation, and civil society organizations play a role in supporting sustainability and justice in handling mining conflicts in Indonesia. Reforms in the dispute resolution system need to focus on strengthening independent mediation institutions, utilizing alternative approaches such as Alternative Dispute Resolution (ADR), and increasing transparency at every stage of the dispute resolution process