Jakarta (ANTARA) \u2014 Energy and Mineral Resources Minister Bahlil\nLahadalia has affirmed that critical mineral commodities remain subject\nto mandatory downstream processing, notwithstanding the trade agreement\non strategic mining goods reached with the United States.<\/p>\n
According to Bahlil, amid shifting geopolitical dynamics and growing\nglobal demand for critical minerals, Indonesia is reasserting its\nbargaining position on the world stage.<\/p>\n
The bilateral meeting between President Prabowo Subianto and US\nPresident Donald Trump in Washington, DC on Thursday (19 February 2026)\nlocal time served as an important moment in strengthening the\npartnership between the two nations through the Agreement on Reciprocal\nTrade (ART).<\/p>\n
For Indonesia, Bahlil continued, this cooperation is not merely a\ntrade deal but part of a strategy to ensure the nation\u2019s critical\nmineral wealth is not traded in raw form.<\/p>\n
The government has affirmed that every investment opportunity arising\nfrom the ART must lead to downstream processing and domestic value\ncreation, so that the economic benefits are felt directly by the\nIndonesian people.<\/p>\n
Minister Bahlil added that Indonesia adheres to the principle of a\nfree and active economy, providing equal investment access to all\ncountries, including the United States, while remaining within the\ncorridor of prevailing Indonesian regulations.<\/p>\n
\u201cFor critical minerals, we have agreed to facilitate American\nbusinesses wishing to invest, while respecting the regulations in force\nin our country. We will also give priority to supporting and\nfacilitating execution, including investment,\u201d Bahlil said during a\npress briefing in Washington on Friday (20 February 2026) local\ntime.<\/p>\n
Bahlil stressed there has been no change in policy regarding raw\nmineral exports, as the Indonesian government remains committed to its\nnational downstream processing programme with no plans to reopen raw\nmaterial exports.<\/p>\n
\u201cSo, let\u2019s say they build a smelter in Indonesia for nickel \u2014 we will\nencourage it and give them the widest possible room, just as we do with\nother countries. This should not be interpreted as us opening up raw\nmaterial exports. What is meant here is that after they carry out\nrefining, the output may then be exported. Let me be clear so there is\nno misinterpretation,\u201d Bahlil said.<\/p>\n
He cited the example of existing cooperation, such as the investment\nby PT Freeport Indonesia in building a copper smelter facility worth\nnearly US$4 billion, one of the largest in the world.<\/p>\n
According to the minister, a similar model can be applied to the\ndevelopment of other critical minerals such as nickel, rare earth metals\nand gold.<\/p>\n
In terms of implementation, Bahlil said the government is offering\ntwo investment schemes to American companies.<\/p>\n
The first is a direct offer for US-based companies to carry out\nexploration, and the second is through partnerships or joint ventures\nwith Indonesian state-owned enterprises (SOEs).<\/p>\n
\u201cOnce they are in production and have built their smelter or\ndownstream processing facility, they have the right to export to\nAmerica,\u201d he added.<\/p>\n
Nevertheless, Bahlil noted that Indonesia is also open to other\ncountries cooperating in the development of critical minerals. The\ngovernment\u2019s policy is not exclusive and is not directed at any single\ncountry, he said.<\/p>\n
Indonesia remains consistent in upholding the principles of open,\nfair and mutually beneficial cooperation with all global strategic\npartners.<\/p>\n
\u201cWe give the same room to other countries as well \u2014 it is simply\nequity treatment,\u201d the Energy and Mineral Resources Minister\nexplained.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/energy-minister-affirms-critical-minerals-must-still-undergo-downstream-processing-1771721125", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }