Indonesia possesses substantial gold reserves and ranks fourth in the\nworld according to the central bank. This strategic position can serve\nas a cornerstone of national mineral sovereignty with optimal\ngovernance.<\/p>\n
The Coordinating Ministry for Economic Affairs records domestic gold\ndemand at approximately 190\u2013200 tonnes per year. However, the large\npotential of gold reserves is not yet fully matched by gold supply\nentering through formal channels. Formal gold supply currently stands at\nonly around 53.5\u201386.2 tonnes per year.<\/p>\n
This gap shows there remains considerable room to strengthen\ngovernance and integrate the national gold supply chain into a formal,\ntransparent and standardised system.<\/p>\n
Director General of Mineral and Coal at the Ministry of Energy and\nMineral Resources (ESDM) Tri Winarno said one of the problems still\nfound in national gold governance is the existence of gold sales\nindicated to be illegal.<\/p>\n
\u201cIndeed, there are several notes on gold where some sales have been\nidentified as, in quotation marks, illegal,\u201d Tri said at the MINDialogue\nforum: Commodities for the Nation, Strategy for Strengthening Mineral\nReserves for Stability and Economic Sovereignty of the Republic of\nIndonesia, in Jakarta, Wednesday (12\/8\/2026).<\/p>\n
On the other hand, the Small-Scale Gold Mining (PESK) sector and\nartisanal mining make a fairly large contribution to national gold\nsupply. Production from this sector is estimated to reach 50\u2013120 tonnes\nper year, or close to the volume of supply coming from formal\nchannels.<\/p>\n
Tri said the government is working to improve artisanal mining\ngovernance by facilitating miners who have so far been identified as\nillegal miners to obtain permits through the People\u2019s Mining Permit\n(IPR) mechanism.<\/p>\n
\u201cSo, going forward, for governance improvements and so on, the\nMinistry of ESDM is actually trying to facilitate miners identified as\nillegal miners to be granted permits through the IPR mechanism,\u201d Tri\nadded.<\/p>\n
Deputy Minister of Investment and Downstreaming as well as Deputy\nHead of BKPM Todotua Pasaribu said Indonesia\u2019s challenge is not only\npursuing economic growth, but also ensuring that natural resource wealth\ncan provide the greatest possible added value for the nation.<\/p>\n
\u201cWe have almost all resource diversification, natural resources. We\nhave gas, we have oil, in the maritime sector, agriculture, almost the\nentire range is there and we also have very capable reserve stock\nstrength. But the problem is how we can create greater value from the\nnatural resource strength we possess,\u201d Todotua said.<\/p>\n
In line with this, President Director of MIND ID Maroef Sjamsoeddin\nassessed that the management of mineral reserves, particularly gold, is\nnot merely an economic matter. According to him, mineral management is\nalso linked to the national interest in maintaining security,\nsovereignty, economic resilience and public welfare.<\/p>\n
\u201cMineral resources must be managed strategically, sustainably, and\nprovide the greatest possible added value for the Unitary State of the\nRepublic of Indonesia (NKRI) as mandated in the Preamble to the 1945\nConstitution, namely for the independence and sovereignty of their\nmanagement,\u201d Maroef explained.<\/p>\n
According to Maroef, there are still a number of aspects that need to\nbe strengthened in national gold governance. These include the\nmanagement of artisanal mining, traceability of the ore supply chain,\nand strengthening the trading ecosystem for mining products so that it\nis connected to formal channels.<\/p>\n
MIND ID assesses that these improvements need to be carried out\ncomprehensively by involving cross-institutional synergy, from the\ngovernment and businesses to the public. The transformation of mineral\nreserve governance, Maroef said, needs to be carried out at every main\nnode of the mining business process, from the upstream, midstream, to\ndownstream sectors.<\/p>\n
In the upstream sector, MIND ID is encouraging the formalisation of\nartisanal mining through IPR supported by regulatory harmonisation and\ncontinuous technical guidance. This step is expected to make artisanal\nmining activities more orderly and safe while providing greater economic\nbenefits for the community.<\/p>\n
Meanwhile, in the midstream sector, ore processing needs to be\nstrengthened through the presence of a legally incorporated aggregator\ninstitution capable of guaranteeing supply chain traceability towards\nthe formal system. Through this scheme, the appointed company can act as\na technical mentor as well as a standby buyer (offtaker) to ensure\nmining products meet the required standards.<\/p>\n
Strengthening governance from upstream to midstream is further\nexpected to increase the supply of raw materials entering the formal\nsupply chain. This will strengthen the productivity of the national gold\nprocessing and refining industry, expand public access to standardised\ngold products, and support the strengthening of the national bullion\necosystem.<\/p>\n
MIND ID believes that improving gold governance will not only\nincrease added value and supply chain efficiency, but also ensure that\nIndonesia\u2019s gold wealth provides greater benefits for the state and\nsociety.<\/p>\n
Ultimately, strengthening national gold governance is part of efforts\nto build sustainable economic sovereignty. With a legally connected,\ntransparent and integrated supply chain from upstream to downstream,\nIndonesia can increase economic activity while strengthening its ability\nto safeguard the strategic value of natural wealth for the greatest\nprosperity of the people and the sovereignty of the state.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/safeguarding-mineral-sovereignty-gold-governance-key-to-unlocking-value-1786582233", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }