{
    "success": true,
    "data": {
        "id": 1878981,
        "msgid": "government-develops-intermediate-mineral-industry-regulation-and-incentives-pose-challenges-1784879671",
        "date": "2026-07-24 13:35:47",
        "title": "Government Develops Intermediate Mineral Industry, Regulation and Incentives Pose Challenges",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia is pushing to develop its intermediate and advanced materials industries to capture greater value from its mineral wealth, moving beyond semi-finished products. Experts highlight that regulatory certainty and fiscal incentives are crucial to bridging the gap between downstream processing and high-tech manufacturing. A recent forum involving state-owned enterprises aims to accelerate this transition through collaboration and technology transfer.",
        "content": "<p>Jakarta (ANTARA) - Regulatory certainty and guaranteed fiscal\nincentives are key for the government to encourage the development of\nintermediate and advanced materials industries in Indonesia. This step\nis urgently needed so that the potential of national mineral\ndownstreaming does not stop at semi-finished products, but can penetrate\nhigh value-added strategic manufacturing industries. Indonesia actually\nhas an upstream advantage thanks to its abundant mineral reserves. These\ncommodities include nickel, copper, bauxite, tin, silica, rare earth\nelements (REE), iron, as well as gold, silver, gallium, and tantalum.\nThese various commodities have currently been processed into basic\ndownstream products. For nickel, for example, this has produced\nferronickel (FeNi), nickel pig iron (NPI), mixed hydroxide precipitate\n(MHP), nickel sulphate, and cobalt sulphate, while copper has been\nprocessed into copper cathode, wire rod, cables, tubes, and strips.\nMeanwhile, bauxite has produced alumina, aluminium ingots, billets,\nextrusions, plates, and foil. Tin has been processed into tin ingots and\nsolder wire, while silica produces silica and REE into magnetic\nmaterials. Gold and silver are also produced for electronic materials.\nExecutive Director of the Centre for Energy and Mining Law Studies\n(PUSHEP) Bisman Bhaktiar said that Indonesia is already carrying out\ndownstreaming. However, the products are only semi-finished or not yet\nfinal products. \u201cGenerally, we have already carried out downstreaming,\nbut only up to semi-finished products or not yet final products, so the\nadded value is not maximised. Because the greatest added value actually\nlies in the advanced industry stages and up to the final product,\u201d\nBisman stated. The problem is that Indonesia still faces a significant\ngap in the intermediate and advanced materials industries, which serve\nas a link between mineral downstreaming results and strategic\nmanufacturing industries. As a result, many high-tech materials still\nhave to be met through imports. According to a report at the Danantara\u2019s\nAdvanced Materials Industry Dialogue 2026 forum, these materials\ninclude, among others, aluminium alloy, special steel, battery-grade\naluminium foil and copper foil, silicon wafers, and NdFeB permanent\nmagnets. These materials are important components in the electronics,\nenergy, and electric vehicle industries. In addition to special\nmaterials, Indonesia is also considered to still have limitations in\nproducing high-value industrial components. These components include\nchips, MOSFET and IGBT transistors, printed circuit boards (PCB),\nsensors, radar, communication modules, BLDC motors, battery cells to\nbattery packs and battery management systems (BMS), as well as precision\ncomponents for the aerospace industry. \u201cFor the development of advanced\nmaterials, it is important for the government to provide legal\nguarantees, regulatory certainty, and incentives, both fiscal and\nnon-fiscal,\u201d Bisman explained. Furthermore, he encouraged a policy that\nany cooperation with foreign parties must include technology transfer,\nrather than just capital investment. In addition, Indonesia must also\nboost human resources and build a mineral-based industrial ecosystem.\nDanantara Indonesia recently held the Danantara\u2019s Advanced Materials\nIndustry Dialogue: From Minerals to Manufacturing at Wisma Danantara\nIndonesia. This forum was an initiation for the development of advanced\nmaterials (critical minerals downstreaming) between PT Mineral Industri\nIndonesia (Persero) or MIND ID, PT LEN Industri (Persero), PT Krakatau\nSteel (Persero) Tbk, and PT Perminas (Persero). This collaboration aims\nto optimise the supply-offtake of critical minerals and advanced\nmaterials for domestic strategic industry needs, accelerate the\nrealisation of a large-scale national advanced materials industry\nthrough joint technology development, and encourage high value-added\nnational economic growth through strategic industrial programmes such\nas, but not limited to, national electric cars and motorcycles,\naerospace, maritime, basic components, and defence and electricity.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/government-develops-intermediate-mineral-industry-regulation-and-incentives-pose-challenges-1784879671",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}