BKPM Encourages Mining Companies to Process Critical Rare Earth Minerals Downstream
Jakarta (ANTARA) - The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is encouraging mining companies to pursue the downstream processing of critical rare earth minerals (LTJ) so they are not exported in raw form.
“The expectation is like that (companies carry out downstream processing). Do not let it be exported only in raw form,” said BKPM Director of Mineral and Coal Downstreaming Rizwan Aryadi Ramadhan after a signing ceremony for a Front-End Engineering Design (FEED) Contract and EPCC Framework Agreement in Jakarta on Wednesday.
According to him, the rare earth content found in critical mineral exports can be processed further, as rare earth elements play a strategic role in the defence industry and other sectors.
“So, all existing commodities, whether minerals, coal, or others, can be processed or have their added value increased in Indonesia from the initial stage to the final stage. LTJ is quite strategic in the context of the defence industry or perhaps other industries,” said Rizwan.
Chief of the Presidential Staff (KSP) Dudung Abdurachman led a cross-ministerial and institutional coordination meeting to resolve obstacles hindering the export of critical minerals containing rare earth elements (LTJ) at the Bina Graha Building, Presidential Palace Complex, Jakarta, on Monday. The meeting aimed to strengthen export governance while responding to reports from business actors regarding stalled mineral exports, such as a case in Pangkal Pinang. Dudung explained that the obstacles arose due to the absence of regulations governing the maximum permitted content of rare earth elements in export commodities. He revealed that many export vessels are currently detained due to fear and uncertainty among business actors in navigating regulatory dynamics. He stressed that this situation must not be allowed to continue and confirmed that the Presidential Staff Office will regularly hold coordination meetings to resolve public and business complaints while overseeing the President’s national priority programmes.