Danantara CTO: BRIN and Universities Collaborate to Develop Rare Earth Elements

Chief Technology Officer (CTO) of the Danantara Investment Management Agency (BPI), Sigit Puji Santosa, has stated that Danantara, together with the Ministry of Higher Education, Science and Technology and the Ministry of Energy and Mineral Resources, will establish a mineral directorate body specifically to manage Rare Earth Elements (REE). This is because, in addition to having enormous potential, REE is an extremely exclusive commodity, very expensive, and not many countries possess it.

Nevertheless, he noted that the biggest challenge at present lies in the REE separation process, which requires advanced technology.

“This is the refinery we are pursuing. Alhamdulillah, we have secured outstanding partners, and we will soon develop this together with our colleagues at BRIN, together with our colleagues at universities. Ultimately, we will achieve self-sufficiency in managing the separation of these elements nationally, or with partners from abroad,” Sigit said during the MINDialogue themed ‘Commodities for the Nation: Strategy for Strengthening Mineral Reserves for Indonesia’s Economic Stability and Sovereignty’ on Wednesday (12/8/2026).

As is known, the characteristics and potential of REE, or rare earth elements, are considered critical mineral commodities for Indonesia’s future. These minerals play an important role in the development of technology industries, ranging from the electric vehicle ecosystem to medical and military equipment.

REE management in Indonesia will be carried out directly by PT Perusahaan Mineral Nasional (Perminas).

According to Sigit, his team is currently building Perminas as a company that will manage REE while also promoting the development of downstream industries, including the permanent magnet industry.

“We at Danantara are also building Perminas, which will manage and develop the magnet industry, from traction motors to car motors,” he concluded.