DEN: Mineral Downstream Processing Cannot Stop at Smelter Stage
The national mineral downstream processing agenda is deemed inappropriate to halt at the intermediate product stage such as aluminium ingots, nickel matte, and ferronickel. Within the framework of the National Energy Policy (KEN), downstream processing must continue through to final industries to truly deliver added value, strengthen energy sovereignty, and promote sustainable economic growth.
Satya Yudha, Daily Chair of the National Energy Council (DEN), emphasised that minerals and coal are not merely export commodities, but primary enablers of energy transition and national industrialisation.
“Our objective is to reach final-stage industry. This means the capacity building of our human resources must increase, our Human Development Index must improve, so that we are prepared to enter more complex industries,” Satya said during the National Energy Policy Forum and Socialisation, Jakarta, Friday (28 February 2026).
Satya explained that the mineral and coal sub-sector is positioned as a strategic enabler across three major pillars of the KEN policy framework: energy transition, energy security, and economic growth.
Indonesia itself sits at the centre of the future energy supply chain. DEN data shows Indonesia holds 5.9 billion tonnes of nickel reserves, representing approximately 42 per cent of global reserves, with production reaching 320.37 million tonnes or 67 per cent of global production. For bauxite, reserves reach 2.9 billion tonnes, whilst tin is recorded at 6.4 billion tonnes or 24.3 per cent of global reserves.
However, according to Satya, these substantial reserves must be accompanied by strengthening of downstream industries and reliable energy readiness. Advanced industries, including high-technology-based manufacturing and electric vehicle battery ecosystems, require stable and reliable energy supply.
“How do we convince intermediate industries to advance to final-stage industries? The answer lies in proper energy management that is reliable. Industry cannot grow without certainty of energy supply,” he said.
Satya assessed that without integration of mining–smelting–final manufacturing, Indonesia risks becoming trapped at the semi-finished product level. Meanwhile, in the context of the government’s targeted 8 per cent economic growth, the industrial sector is the primary driver of increased energy demand and job creation.
In the downstream processing roadmap, the government is also targeting development of a national battery industry. Battery demand through to 2030 is projected to reach 108.2 GWh for electric vehicles and power generation, whilst domestic raw material capacity currently equals only 373 GWh, leaving an investment opportunity of 407 GWh.
For this reason, state-owned mining holding MIND ID is viewed as holding a strategic role in strengthening the downstream ecosystem, including human resources development, supply chain integration, and ensuring sustainable energy support.
“However sophisticated the national energy scenario may be, if industry does not develop, energy demand forecasts could be off-target. Therefore, policy and policy implementers must not diverge,” Satya said.
With strategic reserves, regulatory support, and strengthened ESG governance, downstream processing becomes not only an economic instrument, but also part of the mandate to manage natural resources for the nation’s prosperity.