Indonesian Political, Business & Finance News

A New Chapter in Indonesia's Mining Industry Roadmap

| Source: CNBC Translated from Indonesian | Mining
A New Chapter in Indonesia's Mining Industry Roadmap
Image: CNBC

Indonesia has been recognised as one of the countries with the largest mineral and coal resources in the world. From nickel, copper, bauxite, gold, and tin to coal, Indonesia holds a highly strategic position in the global industrial supply chain.

According to data from the Geological Agency, Indonesia possesses the world’s largest nickel reserves, accounting for approximately 42% of global reserves. Indonesia also ranks first globally for tin reserves, fourth for bauxite and gold, ninth for copper, and sixth for coal reserves.

For years, much of the economic value in the mining sector has relied on the sale of raw commodities, leaving the sector’s performance highly susceptible to global price fluctuations. This stagnation has prevented the nation from achieving significant growth in mining revenues.

Furthermore, current mineral and coal reserves are finite natural resources that will not increase. Therefore, their management must be conducted wisely to support the nation’s economic development.

In the future, Indonesia requires an integrated mining industry development model capable of optimising national mineral and coal wealth as a driver for more sustainable economic growth, higher value-add, and broader benefits for society.

Rather than focusing solely on extraction activities, the direction of mining industry development needs to move towards strengthening value-add through domestic processing, the development of downstream industries, the expansion of global strategic partnerships, and the creation of an integrated industrial ecosystem.

Ultimately, this approach is becoming increasingly relevant because the future of the mining industry will no longer be determined solely by the size of reserves, but by the ability to transform those reserves into products, technology, investment, and economic activities that provide greater benefits to the country.

Selly Adriatika, Division Head of Institutional Relations at MIND ID, explained that the national mining industry needs to enter a new chapter capable of delivering multiplied value-add to drive Indonesia’s economic growth. Moreover, Indonesia has a significant opportunity to transform from a commodity exporter into an integrated industrial nation by utilising its own natural resources.

“The government has tasked MIND ID with ensuring that Indonesia’s mineral wealth does not stop at the extraction process. These natural resources must serve as the foundation for industrialisation that can strengthen the national economic structure and enhance Indonesia’s economic sovereignty,” Selly stated in a written statement on Sunday (30/08/2026).

She continued that the Indonesian Mining Industry Holding, MIND ID, exists as part of the effort to initiate this new chapter and address the stagnation previously seen in mining industry development. Indonesia needs to strengthen processing capabilities to produce goods and raw materials that align with domestic industrial needs.

At the same time, Indonesia must strengthen strategic partnerships with various industrial players and international investors to accelerate technology mastery and expand market access.

Concurrently, the creation of new economic growth engines must be accelerated through the integration of various strategic mineral value chains. Consequently, the mining sector must become a connected and mutually reinforcing ecosystem.

As is known, in accordance with Article 33 of the 1945 Constitution, which mandates that the use of the earth, water, and natural wealth must be for the prosperity of the people, the control of natural resource reserves is one of MIND ID’s mandates. As an extension of the government, MIND ID is present to realise more strategic control over natural resources, including taking over strategic mineral and coal reserves held by foreign entities to maximise benefits for the Indonesian people.

“Our goal does not stop at mine management. What we want to achieve is how all of Indonesia’s natural resource wealth can be optimised to strengthen economic sovereignty and provide the greatest possible benefits for Indonesia,” Selly concluded.

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