Indonesian Political, Business & Finance News

Deputy Minister of Investment: US Trade Agreement Will Not Relax Rules on Critical Mineral Exports

| | Source: MUREKS.CO.ID Translated from Indonesian | Trade
Deputy Minister of Investment: US Trade Agreement Will Not Relax Rules on Critical Mineral Exports
Image: MUREKS.CO.ID

The Ministry of Investment/Capital Investment Coordinating Board (BKPM) has affirmed that the policy of prohibiting the export of raw critical minerals will remain in effect. This confirmation was made following the signing of an agreement on reciprocal trade (ART) on Thursday, February 19th.

  • Indonesia has a policy of prohibiting the export of raw minerals.

  • This policy aims to encourage the development of downstream industries within the country.

  • The Deputy Minister of Investment affirmed that the trade agreement with the US will not relax the rules on critical mineral exports.

  • The government’s focus is on developing mineral processing industries within the country.

  • The trade agreement between Indonesia and the US includes aspects of reciprocal tariffs.

  • The ban on critical mineral exports is part of an effort to strengthen national industries.

Q: What is the main point of the Deputy Minister of Investment’s statement regarding mineral exports?

A: The Deputy Minister of Investment affirmed that the trade agreement with the United States will not relax Indonesia’s rules regarding the ban on critical mineral exports.

Q: Why does Indonesia impose a ban on the export of raw minerals?

A: This ban aims to encourage the development of downstream industries within the country, increase the added value of products, and optimize the use of mineral resources.

Q: Does the trade agreement with the US affect Indonesia’s policy on the ban on mineral exports?

A: No, Indonesia’s policy on the ban on critical mineral exports remains in effect and will not be affected by the trade agreement with the US, even though the agreement includes aspects of reciprocal tariffs.

Deputy Minister of Investment and Downstreaming/BKPM, Todotua Pasaribu, explained that the trade agreement, which grants US companies access to manage the critical mineral sector in Indonesia, will not relax export rules. According to Todotua, similar access is also open to all countries, as long as they are committed to investing in Indonesia.

“Basically, the US request to grant US companies access to our mineral sectors, including rare earths, is not a problem. And everything we do, perhaps all countries do the same, as long as it is done under the rule that if they want to enter, they must invest,” said Todotua to reporters at the Ministry of Investment and Downstreaming/BKPM on Thursday (February 26, 2026), as reported by Mureks.

Todotua added that the trade agreement with the US will not reopen the export of raw mineral materials. He emphasized that this export ban is clearly regulated in the law in effect in Indonesia.

“Our country, by law, does not allow our raw materials to be exported because there is a process, downstreaming, investment, they can enter. It’s just normal business to business,” he added.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto also stated that Indonesia is open to cooperating with the US in managing the critical mineral sector. This statement was made by Airlangga during a press conference regarding the Signing of the Indonesia-United States Reciprocal Trade Agreement on Friday (February 20, 2026).

“Our critical minerals, as we have mentioned, are related to industrial minerals, meaning there is a secondary process, and Indonesia is open to cooperation in investment and technology, both for critical minerals and rare earths,” said Airlangga.

Source: asatunews.co.id

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