Energy Transition Requires Mineral Foundation; DEN Says Mining Holding Role Increasingly Crucial
Jakarta — Accelerating Indonesia’s national energy transition involves far more than developing renewable energy; it requires securing supply chains for critical minerals as the foundation of future energy technology. Under Government Regulation Number 40 of 2025 on the National Energy Policy (KEN), the minerals and coal sector (minerba) has been designated as a strategic element supporting clean energy development towards achieving net-zero emissions by 2060.
Satya Yudha, Secretary General of the National Energy Council (DEN), explained that expanding solar energy and nuclear power generation capacity in the KEN scenario cannot be separated from mineral requirements as core components of modern energy systems.
He noted that within the energy transition roadmap outlined in the energy policy regulation, solar energy is projected to occupy a significant share, whilst nuclear power will make substantial contributions by 2060. This inevitably drives sharp increases in mineral demand for batteries, cables and various electrical components.
“Looking at the energy transition roadmap in the KEN regulation, solar energy will have a very substantial share, and nuclear power will also be significant by 2060. This means minerals for batteries and supporting components come from the mining sector. That directly supports energy transition,” Satya stated.
According to him, the connection between national energy policy and the mining sector is bidirectional. On one hand, critical minerals such as nickel, bauxite, copper and by-products serve as primary raw materials for clean energy technology. On the other, downstream processing in the mining sector itself requires reliable and sustainable energy supply.
“Smelters cannot operate without electricity, and looking ahead we are talking about greener and more sustainable electricity. So the energy and mining sectors support each other,” he said.
Satya added that under the latest KEN scenario, energy transition focuses not only on shifting the generation mix but also strengthening the mineral supply chain underpinning the technology. Increases in solar generation capacity, nuclear power development and energy storage systems will boost demand for strategic minerals currently managed by the national mining sector.
“Our agenda is a transition agenda. If solar has a large share, if nuclear enters significantly, then mineral demand for batteries, cables, electrical components automatically increases. This means the mining sector sits at the heart of the transition ecosystem,” he stated.
In this context, the role of mining industry holding companies such as MIND ID is deemed critical. As an entity overseeing several strategic state-owned mining enterprises, MIND ID occupies a central position in ensuring the availability and processing of critical minerals to support national energy transformation.
Satya emphasised that success of the national energy policy cannot be separated from industry readiness to provide strategic raw materials whilst executing value-added downstream processing. He views collaboration between policymakers and industry players as key to aligning supply and demand sides.
“However strong the national energy scenario, it cannot be separated from supply and demand. Who supplies? Who uses? Industry is the largest energy consumer and simultaneously provides critical raw materials for transition. Therefore, collaboration between policymakers and industry players becomes extremely important,” he said.
With a 8 per cent economic growth target and commitment to net-zero emissions by 2060, strengthening the critical minerals ecosystem is viewed as an inseparable part of national energy security strategy.
“Energy transition is not just about replacing energy sources, but also building the industrial foundation for it. And that is where the mining sector’s role, including MIND ID, becomes strategic,” Satya concluded.