Critical Minerals Must Not Be Wasted: DEN Says Much Potential Still Considered Waste
Amidst the acceleration of the global energy transition, the development of critical minerals is considered one of the strategic keys to energy security and the competitiveness of Indonesia’s national industry. However, to date, many by-product minerals remain underutilised and are even regarded as waste.
Satya Yudha, daily chair of the National Energy Council (DEN), stated that in Indonesian mining practice, there are still many high-value minerals that have not been identified optimally due to limitations in processing technology.
“Many by-product minerals actually have strategic value, but we have not maximised them yet. There are even some that have not been discovered or counted because they are considered waste,” said Satya during a National Energy Policy Seminar and Socialisation event in Jakarta on Thursday, 27 February.
Yet, in the global context, critical minerals such as nickel, copper, rare earth metals, and elements supporting batteries and renewable energy have become main components in the development of electric vehicles, energy storage systems, and the defence industry.
The Government has established a classification of critical and strategic minerals to support the development of national industry and reduce the risk of dependence on global supply. The criteria for critical minerals include serving as raw material for strategic industries, having a high risk of supply disruption, and having no suitable substitute.
Satya emphasised that the main challenge is not only the size of reserves, but the ability of technology to process and separate by-product minerals to add value.
“The key is in processing technology. If the technology advances, then what was previously considered waste could become a high-value product,” he said.
The waste-to-value approach is seen as a new paradigm in mineral resource management. In this practice, residue or by-product minerals from the main process are no longer viewed as production waste, but as a new economic potential that can strengthen downstream industrialisation.
In addition to increasing value added, the optimisation of critical minerals is also seen as strengthening Indonesia’s position in the future energy supply chain. Moreover, the global energy transition is projected to significantly increase demand for certain minerals over the next decade.
However, such development must still be accompanied by sustainable mining practices, the application of strict environmental standards, and transparent governance.
“Minerals build civilisation, but sustainability determines whether that civilisation can endure,” said Satya.
Therefore, strengthening research, innovation in processing technology, and collaboration between government, industry, and academia is crucial so that Indonesia’s potential for critical minerals is no longer wasted as waste, but instead becomes a driver of economic growth and energy security.