Deputy Minister of Investment Affirms US Must Still Invest in Indonesia's Mineral Downstreaming Projects

Jakarta, VIVA – Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, affirmed that regarding the trade agreement with the United States (US) within the Agreement on Reciprocal Trade (ART), Indonesia remains committed to the rule prohibiting the export of raw materials without processing.

Therefore, Todotua emphasized that every investor entering the mineral sector is required to invest in the processing process within the country.

“As long as they comply with the rule that if they want to enter, they must invest in the processing. Because our country, by law, does not allow the export of our raw materials. There is a process, the downstreaming, the investment, then they can enter,” said Todotua in Jakarta, Thursday, February 26, 2026.

With this scheme, the government ensures that the cooperation built is equal and mutually beneficial. “It is essentially just a normal business-to-business arrangement,” he said.

Todotua said that the US access to Indonesia’s critical minerals within the framework of the trade agreement still requires investment and downstream processing in the country.

“The point is, the US request to provide US business actors with access to our mineral sectors, including rare earths, is not actually a problem,” said Todotua.

Furthermore, Todotua explained that the government has set annual investment targets and is encouraging priority sectors based on downstreaming, with a total investment value in the country reaching IDR 13,000 trillion in the next five years.

“We already have a big plan for investment. There are annual investment targets that we must achieve. There are priority sectors that we are encouraging, especially in relation to the concept of downstreaming,” he said.

Todotua believes that downstreaming provides significant growth while ensuring that natural resources are processed domestically, thereby creating added value and strengthening the national industrial ecosystem.

According to him, trade and investment negotiations are not only conducted with the US, but also with Europe and other partner countries. However, the fundamental principle remains the same, namely that access is granted as long as there is a commitment to investment and processing in Indonesia.

“We are ready, they ask for access, okay, we will allow it. As long as they invest in downstreaming, in the processing, we will provide access. It’s equal trade,” he said. (Ant).