As the World Scrambles, Indonesia Targets Downstream Processing of Rare Earth Metals

The Indonesian government continues to push for stronger downstream processing and industrialisation to increase the nation’s bargaining power in global trade. According to Edi Prio Pambudi, Deputy for Economic Cooperation and Investment Coordination at the Coordinating Ministry for Economic Affairs, Indonesia is not satisfied merely being a supplier of raw commodities but must also become a supplier of high-value finished products. Strengthening Indonesia’s position in the global supply chain is being carried out through a number of strategies, including reinforcing 28 key commodity routes where downstream processing is being promoted. The push for downstream processing is also being achieved by building regional ecosystems to strengthen efficiency and attract investment, as well as entering high-tech supply chains such as semiconductors. One commodity that is a focus of downstream processing is rare earth metals, which are currently being contested globally. In addition, there are a number of challenges related to regulatory ease and the security of energy supplies to make production processes more efficient and increase the competitiveness of national products.