Indonesian Political, Business & Finance News

ESDM Coordinates to Resolve Critical Mineral Export Issues

| Source: ANTARA_ID Translated from Indonesian | Economy
ESDM Coordinates to Resolve Critical Mineral Export Issues
Image: ANTARA_ID

The Ministry of Energy and Mineral Resources (ESDM) is coordinating between the Directorate General of Law Enforcement (Gakkum) and the Directorate General of Minerals and Coal (Minerba) to resolve issues surrounding the export of critical minerals containing rare earth elements (REE).

“That is being coordinated by Gakkum and also with the Director General of Minerba regarding the current existing conditions,” said Deputy Minister of ESDM Yuliot, as confirmed by ANTARA from Jakarta on Wednesday.

The statement relates to several mineral export companies whose shipments have been held up after critical REE minerals were found in their export commodities.

Yuliot stressed that exporting raw materials, including critical REE minerals, is prohibited. He explained that critical REE minerals must be processed domestically and utilised for the development of domestic industries.

“REE can be produced in two ways, first from mining activities, and second from the processing industry,” Yuliot added.

Furthermore, critical REE minerals also play a role in the development of advanced technology, such as for the domestic defence sector.

To regulate the utilisation of critical REE minerals, Yuliot noted that a dedicated institution has been assigned, namely the Mineral Industry Agency (BIM).

“So, with this, we will also look at the domestic processing and the domestic value-added process,” Yuliot said.

Presidential Chief of Staff Dudung Abdurachman led a cross-ministerial and institutional coordination meeting to resolve various obstacles to the export of critical minerals containing rare earth elements (REE) at the Bina Graha Building, Presidential Palace Complex, Jakarta, on Monday (27/7).

The meeting aimed to strengthen export governance while responding to reports from business actors regarding the stalled export of associated minerals, such as the case in Pangkal Pinang.

Dudung explained that the obstacles arose due to the absence of regulations governing the maximum permissible limit of associated REE mineral content in export commodities.

Dudung revealed that many export vessels are currently held up due to the fear and hesitation of business actors in facing regulatory dynamics. He asserted that this situation must not be allowed to continue.

He confirmed that the Presidential Staff Office (KSP) will routinely hold periodic coordination meetings to unravel every complaint from the public and business actors, while also overseeing the national priority programmes launched by the President.

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