Energy Minister affirms critical minerals must still undergo downstream processing
Jakarta (ANTARA) — Energy and Mineral Resources Minister Bahlil Lahadalia has affirmed that critical mineral commodities remain subject to mandatory downstream processing, notwithstanding the trade agreement on strategic mining goods reached with the United States.
According to Bahlil, amid shifting geopolitical dynamics and growing global demand for critical minerals, Indonesia is reasserting its bargaining position on the world stage.
The bilateral meeting between President Prabowo Subianto and US President Donald Trump in Washington, DC on Thursday (19 February 2026) local time served as an important moment in strengthening the partnership between the two nations through the Agreement on Reciprocal Trade (ART).
For Indonesia, Bahlil continued, this cooperation is not merely a trade deal but part of a strategy to ensure the nation’s critical mineral wealth is not traded in raw form.
The government has affirmed that every investment opportunity arising from the ART must lead to downstream processing and domestic value creation, so that the economic benefits are felt directly by the Indonesian people.
Minister Bahlil added that Indonesia adheres to the principle of a free and active economy, providing equal investment access to all countries, including the United States, while remaining within the corridor of prevailing Indonesian regulations.
“For critical minerals, we have agreed to facilitate American businesses wishing to invest, while respecting the regulations in force in our country. We will also give priority to supporting and facilitating execution, including investment,” Bahlil said during a press briefing in Washington on Friday (20 February 2026) local time.
Bahlil stressed there has been no change in policy regarding raw mineral exports, as the Indonesian government remains committed to its national downstream processing programme with no plans to reopen raw material exports.
“So, let’s say they build a smelter in Indonesia for nickel — we will encourage it and give them the widest possible room, just as we do with other countries. This should not be interpreted as us opening up raw material exports. What is meant here is that after they carry out refining, the output may then be exported. Let me be clear so there is no misinterpretation,” Bahlil said.
He cited the example of existing cooperation, such as the investment by PT Freeport Indonesia in building a copper smelter facility worth nearly US$4 billion, one of the largest in the world.
According to the minister, a similar model can be applied to the development of other critical minerals such as nickel, rare earth metals and gold.
In terms of implementation, Bahlil said the government is offering two investment schemes to American companies.
The first is a direct offer for US-based companies to carry out exploration, and the second is through partnerships or joint ventures with Indonesian state-owned enterprises (SOEs).
“Once they are in production and have built their smelter or downstream processing facility, they have the right to export to America,” he added.
Nevertheless, Bahlil noted that Indonesia is also open to other countries cooperating in the development of critical minerals. The government’s policy is not exclusive and is not directed at any single country, he said.
Indonesia remains consistent in upholding the principles of open, fair and mutually beneficial cooperation with all global strategic partners.
“We give the same room to other countries as well — it is simply equity treatment,” the Energy and Mineral Resources Minister explained.