DPR Urges Government to Resolve Nickel and Rare Earth Export Deadlock

The House of Representatives (DPR) has urged the government, law enforcement, and all stakeholders to convene immediately to resolve the deadlock on exports of mineral products such as nickel pig iron (NPI), which has been triggered by governance issues surrounding rare earth elements (LTJ). Bambang Patijaya, a member of the DPR, stated that the current problem is not purely a matter of law enforcement but stems from the absence of clear regulations regarding the management and threshold limits for LTJ content in mineral commodities. “The issue now is governance. The government is trying to control the raw materials for LTJ, but the situation is far from being resolved,” he said during a CNBC Indonesia Coffee Morning event. He added that the situation has been exacerbated by conflicts among business actors reporting each other’s activities, leading to enforcement actions that have created widespread fear and disrupted the economic cycle.

Sari Esayanti, Executive Director of the Indonesia Mining Association (IMA), noted that the challenge lies in the identification, testing, and regulation of these associated minerals, which naturally occur in very small quantities. She explained that mining operations focus on primary commodities under their respective permits, and most companies lack the facilities or technology to economically separate or utilise LTJ. The emergence of new interpretations regarding reporting obligations has created significant uncertainty for businesses, who are calling for clear technical parameters, testing methodologies, and reporting mechanisms to establish a uniform standard.

Ronald Sulistyanto, Chairman of the Indonesian Bauxite Association (ABI), echoed these concerns, stating that the presence of LTJ in bauxite is a long-known issue but one that lacks a clear governance framework. He emphasised that the LTJ content in processed bauxite products is extremely small and subjective, making it impractical to treat it as a primary commodity. He urged the government to return to the core principle that mining regulation falls under the Ministry of Energy and Mineral Resources (ESDM) and to establish distinct rules for by-product minerals rather than applying the same provisions as for primary commodities.