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🇮🇩 Indonesia /Economy & Trade

Indonesia urged to provide regulatory certainty for intermediate mineral industry

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • The Indonesian government is urged to provide regulatory certainty and fiscal incentives for the development of an intermediate mineral industry.
  • This is seen as crucial for advancing national mineral downstreaming and producing high-value products.
  • MIND ID and other state-owned enterprises are collaborating to strengthen the development of mineral-based advanced materials.

Indonesia's government is being pressed to offer regulatory certainty and fiscal incentives to accelerate the development of its intermediate mineral industry. This push is vital for advancing the nation's mineral downstreaming efforts and ensuring the production of high-value end products.

Experts emphasize that clear legal frameworks are fundamental for attracting investment in advanced materials. Without them, developing the intermediate industry, which bridges mineral processing and strategic manufacturing, will remain challenging. The current downstreaming process is dominated by semi-finished goods, limiting the realization of maximum value addition.

The issue was highlighted at Danantara's Advanced Materials Industry Dialogue 2026. The forum fostered collaboration among state-owned enterprises, including MIND ID, PT LEN Industri, PT Krakatau Steel, and PT Perminas, to bolster the development of mineral-based advanced materials for national strategic needs. Ensuring technology transfer in foreign partnerships and strengthening the domestic workforce are also key priorities.

Currently, what is important is that the government needs to provide legal guarantees, regulatory certainty, and fiscal and non-fiscal incentives.

— Bisman BhaktiarDirector of the Center for Law, Energy & Mining Studies (PUSHEP) explaining the need for government support.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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