Indonesia\u2019s Ministry of Energy and Mineral Resources has disclosed\nthat India will be involved in the development of critical minerals in\nIndonesia, resources that are coveted globally.<\/p>\n
This was communicated by Deputy Minister of Energy and Mineral\nResources Yuliot Tanjung following his meeting with Sandeep Poundrik,\nSecretary of the Ministry of Steel of the Government of India some time\nago.<\/p>\n
Yuliot stated that this step aims to strengthen national energy\nresilience whilst opening up opportunities for sustainable investment\nthat provides long-term economic benefits.<\/p>\n
During the meeting, discussions covered plans for drafting a\nMemorandum of Understanding (MoU) as an umbrella for cooperation between\nthe two countries. Once both parties agree, it will be signed at\nministerial level.<\/p>\n
\u201cWe discussed many aspects. One of the things they asked was how to\nenhance cooperation which would be embodied in the form of an agreement\nor an MoU for cooperation,\u201d said Yuliot when met at the Ministry of\nEnergy and Mineral Resources office in Jakarta on Friday (27 February\n2026).<\/p>\n
Yuliot stated that in the MoU, the Indian government will encourage\ncompanies from its country to invest in Indonesia, particularly in the\nmetal industry sector.<\/p>\n
\u201cSo the cooperation is that from India, they will also encourage\nIndian companies to make investments in Indonesia, especially in the\nmetal industry,\u201d said Yuliot.<\/p>\n
Additionally, both countries will explore the continued development\nof the metal industry into equipment and capital goods that can be\njointly produced.<\/p>\n
\u201cFurthermore, on the utilisation side, there is also continued\ndownstream processing of the metal industry into equipment or capital\ngoods that could be jointly developed,\u201d he said.<\/p>\n
The final discussion point, according to Yuliot, concerned\ncooperation in the development of capital goods in the form of research\nand innovation that is more efficient in its utilisation.<\/p>\n
\u201cIndia will submit a draft MoU which we will then consult on with the\nMinistry of Foreign Affairs regarding the framework of the MoU to be\ndiscussed and will be followed up with signing between ministers, the\nMinister of Energy and Mineral Resources and India\u2019s Minister of Steel,\u201d\nhe explained.<\/p>\n
Agreement with the United States<\/p>\n
Previously, the Indonesian Government also agreed to establish\ncritical mineral trade cooperation with the United States. This aligns\nwith the reciprocal tariff trade agreement (Agreements on Reciprocal\nTrade\/ART) officially signed by President Prabowo Subianto and US\nPresident Donald Trump on Thursday (19 February) at Washington D.C.<\/p>\n
Minister of Energy and Mineral Resources Bahlil Lahadalia affirmed\nthat for Indonesia, this cooperation is part of a national strategy to\nensure critical minerals are not traded in raw form.<\/p>\n
According to him, through the agreement the government can ensure\nforeign investment remains focused on developing domestic processing\nindustries, thereby not altering the direction of national downstream\nprocessing policy.<\/p>\n
\u201cRegarding critical minerals, we have agreed to facilitate American\nentrepreneurs to invest, whilst respecting the regulations applicable in\nour country,\u201d said Bahlil in a written statement on Saturday (21\nFebruary 2026).<\/p>\n
Bahlil firmly stated there is no change in policy regarding raw\nmineral exports, as the Indonesian government remains committed to\nimplementing the national downstream processing programme and has no\nplans to open the tap for exporting raw materials.<\/p>\n
\u201cSo, let\u2019s say they build a smelter in Indonesia for nickel, we will\nencourage it, we will provide the broadest possible space, and the same\napplies with other countries. So, don\u2019t interpret this as us opening\nexports of raw materials. What is meant here is that after they conduct\nrefining, then the results can be exported. Let\u2019s be clear about this,\nso there is no misinterpretation,\u201d he stressed.<\/p>\n
Furthermore, he cited an example of Indonesia-US critical mineral\ncooperation already underway, namely the investment conducted by\nFreeport Indonesia which built a copper smelter facility with investment\nvalue of nearly US$4 billion and is one of the largest in the world.<\/p>\n
Two Models of Cooperation<\/p>\n
According to him, a similar pattern can be applied to the development\nof other critical minerals such as nickel, rare earth metals, and gold;\nin which, in its implementation, Bahlil stated the government is\noffering two investment schemes for US companies.<\/p>\n
First by directly offering US companies the opportunity to carry out\nexploration, and secondly through partnership or joint venture (JV) with\nIndonesian State-Owned Enterprises (SOEs).<\/p>\n
\u201cOnce they are already producing and building a smelter or downstream\nprocessing facility, then they have the right to export to America,\u201d he\nadded.<\/p>\n
Beyond that, Bahlil stated that Indonesia not only conveys that\nIndonesia adheres to the principle of active free economy. Thus the\ngovernment will continue to provide equal investment space to all\ncountries to cooperate in the development of critical minerals.<\/p>\n
According to him, the government\u2019s policy is not exclusive and is not\nsolely directed at one particular country, including the US. Indonesia\nremains consistent in implementing the principle of cooperation that is\nopen, fair, and mutually beneficial with all global strategic\npartners.<\/p>\n
\u201cWe provide space equally with other countries as well, so equitable\ntreatment (equal treatment) only,\u201d concluded Bahlil.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/united-states-and-india-set-to-enter-indonesia-for-critical-mineral-development-sought-globally-1772229196", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }