Deputy Minister of Investment Reminds US That Access to Indonesia's Critical Minerals Requires Investment and Downstream Processing
Jakarta — The Deputy Minister of Investment and Downstream Development and Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu has clarified that access to Indonesia’s critical minerals granted to the United States under trade agreement frameworks remains contingent upon investment requirements and domestic downstream processing.
“Essentially, the US request for American business actors to be given access to our mineral sectors, including rare earth, is not a problem,” said Todotua when met following a socialisation of Government Regulation 28/2025 in Jakarta on Thursday, 26 February 2026.
Indonesia continues to adhere to regulations prohibiting the export of unprocessed raw materials. Therefore, any investor entering the mineral sector must invest in domestic processing operations.
“As long as that is done under the regulation that if they want to enter, they must invest in processing. Since our country under law does not permit our raw materials to be exported in their natural state. There is a process, downstream development, investment—once they meet these conditions, they may enter,” said Todotua.
Through this framework, the government emphasises that partnerships are conducted on an equal basis and provide benefits to both parties.
“It is really just normal business-to-business,” he explained.
Todotua added that the government has established annual investment realisation targets and is promoting priority sectors based on downstream development. Overall, domestic investment is targeted to reach Rp13 trillion over the next five years.
“We have a comprehensive investment plan. There are investment targets we must achieve annually. There are priority sectors we are encouraging, particularly regarding the downstream concept,” said Todotua.
He believes that the downstream programme can drive significant growth whilst ensuring natural resources are processed domestically, thereby generating added value and strengthening the national industrial ecosystem.
Todotua also emphasised that trade and investment negotiations are not limited to the United States but also involve European countries and other strategic partners. Nevertheless, the fundamental principle remains the same: access is granted only if there is a commitment to investment and processing in Indonesia.
“We are ready. If they request access, okay, it is allowed. As long as they invest in downstream development and processing, we will provide access. It is equal trade,” he said.
The government is also developing downstream roadmaps for 28 strategic commodities projected as investment opportunities for global partners.
“This is really not only about America. It is about Europe, Japan, China, South Korea and others,” said Todotua.
Energy and Mineral Resources Minister Bahlil Lahadalia has reinforced that critical mineral commodities must still undergo downstream processing even with the trade agreement for strategic mining goods with the United States. He made this statement in Jakarta on Saturday, 21 February 2026, amid geopolitical dynamics and growing global demand for critical minerals. The bilateral meeting between Indonesian President Prabowo Subianto and US President Donald Trump in Washington DC on Thursday, 19 February 2026, provided a strategic opportunity to strengthen bilateral partnership through the Agreement on Reciprocal Trade (ART).