JAKARTA \u2014 The Indonesian government has clarified that the\nIndonesia\u2013United States (US) trade agreement under the Agreement on\nReciprocal Trade (ART) scheme does not alter the fundamental principle\nof mandatory national mineral processing. Access for US investors to\ncritical minerals, including rare earth elements, remains restricted by\nrequirements for domestic investment and processing.<\/p>\n
Deputy Minister of Investment and Industrial Development\/Deputy Head\nof BKPM, Todotua Pasaribu, has confirmed that granting access to\nAmerican business operators does not create room for raw material\nexports.<\/p>\n
\u201cEssentially, the US request for American business operators to be\ngiven access to our mineral sectors, including rare earth, is not a\nproblem,\u201d said Todotua in Jakarta on Thursday (26 February 2026).<\/p>\n
Todotua emphasised that the prohibition on raw material exports\nremains in force under Indonesia\u2019s legal framework. Every foreign\ncompany wishing to manage strategic minerals is required to build\nprocessing facilities (smelters) within Indonesia.<\/p>\n
\u201cAs long as this follows the regulation that if they want to enter,\nthey must invest in processing. Because our country\u2019s law does not\npermit our raw materials to leave the country,\u201d he asserted.<\/p>\n
The principle of equal trade also applies to all other global\npartners, including Europe and Asian countries. Moreover, the government\npositions mineral processing as the foundation for pursuing a target\ninvestment realisation of Rp 13 trillion over the next five years.<\/p>\n
\u201cWe are ready, they request access to enter, okay that\u2019s allowed. As\nlong as they make investments in processing, we grant access. It\u2019s equal\ntrade,\u201d added Todotua.<\/p>\n
\u201cWe already have a large investment plan. There is an investment\ntarget figure that we must achieve each year. There are priority sectors\nthat we push, especially regarding the downstream concept,\u201d he\ncontinued.<\/p>\n
In line with this, Energy and Mineral Resources Minister Bahlil\nLahadalia previously also confirmed that strategic commodities such as\nnickel and rare earth elements are indeed open to US investors, but\nremain subject to strict domestic regulatory oversight.<\/p>\n
\u201cWe must still respect the regulations that apply within our country,\nbut we will also provide priority to support and facilitate\nimplementation,\u201d explained Bahlil.<\/p>\n
Bahlil emphasised that this openness to investment should not be\nmisinterpreted as a relaxation of policy. The government\u2019s focus remains\non strengthening domestic value chains.<\/p>\n
\u201cSo don\u2019t interpret this as us opening up raw material exports, no.\nWhat is meant is that after refining, the results can then be exported,\u201d\nsaid Bahlil.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-us-trade-agreement-mandatory-processing-raw-material-exports-remain-banned-1772175597", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }