ESDM Begins Untangling Mineral Export Issues Due to Rare Earth Content

The Ministry of Energy and Mineral Resources (ESDM) has begun to unravel the issue of mineral exports affected by the presence of rare earth elements (REE) as associated minerals. The government is currently coordinating across agencies to resolve the obstacles that have arisen. Recently, a number of nickel pig iron (NPI) shipments from Indonesia were reported to have faced delays because the cargo had to undergo additional testing for rare earth element content. “That is currently being coordinated by Gakum and also with the Director General of Minerals and Coal regarding the existing conditions,” explained Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, in Jakarta on Tuesday (28/7/2026). Yuliot stated that the government, in principle, is pushing for rare earth elements to be processed domestically to support the development of national industry, including high-tech industries. “For these REEs, they must be processed domestically and also utilised for industrial development and domestic high-tech mastery. There is already an institution assigned to this, the Indonesian Mineral Board,” Yuliot said. According to him, the government will also review the development of the processing and value addition of REEs within the country. However, regarding specific regulations on REE trading procedures, Yuliot said the government is still reviewing the legal framework. Yuliot explained that rare earth elements can come from two sources: from mining activities and from mineral processing industries. Previously, Chief of the Presidential Staff (KSP) Dudung Abdurachman spoke out about the disruption to mineral exports containing rare earth elements as associated minerals. He revealed this after the KSP received reports from several business owners regarding the hampered export activities. According to him, the obstacle was triggered by the absence of regulatory certainty regarding the limit of REE content, causing doubt among business actors and law enforcement officials. “I received reports from several business owners that mineral exports are currently hampered, and after I communicated, many parties are involved here,” Dudung said after chairing a coordination meeting on the governance of critical mineral exports of rare earth elements at the Bina Graha Building, Jakarta, on Monday (27/7/2026). Dudung explained that one of the causes of the export barrier is the lack of regulations governing the maximum limit of rare earth elements as associated minerals in export commodities. This regulatory vacuum has led business actors and law enforcement officials to have differing interpretations in its implementation. He then stressed that as long as there are no regulations governing REE content, law enforcement officials must not create their own interpretations that result in the obstruction of export activities. Therefore, to overcome this problem, the KSP is pushing for the formulation of guidelines that provide certainty for business actors regarding the maximum limit of REE content as associated minerals. The guidelines are being prepared jointly with technical ministries, law enforcement officials, and business actors. “We will tidy up the regulations, but exports must not stop because it will also have a bad impact on the public. Many ships are being held up due to rigid rules, overlapping regulations, and doubts. Thirdly, because of fear from the business actors themselves,” Dudung said.