Get Ready: Indonesia to Soon Have a Rare Earth Minerals Processing Plant

PT Timah (Persero) Tbk (TINS) is preparing to build a rare earth minerals processing plant, which will begin with a groundbreaking on 20 May 2026. This project is part of directives from Indonesian President Prabowo Subianto. Timah’s President Director Restu Widiyantoro explained that this represents a new milestone for the company, as rare earth mineral processing has never been undertaken before. “And this is the main challenge because the government, under President Prabowo, has even ordered us to conduct the groundbreaking for the rare earth minerals plant project as close as possible to 20 May,” said Restu during a hearing with Commission VI of the Indonesian House of Representatives, quoted on Wednesday (1/4/2026). He added that President Prabowo has given direct instructions to realise the project promptly, with a target to accelerate monetisation. At the latest, within two years after construction begins, the plant should be able to produce economically valuable products. “The groundbreaking will take place on 20 May, and President Prabowo has ordered that monetisation must occur as quickly as possible or at the latest within two years, there must be monetisation products. That means it can already generate revenue for the state,” he stated. Restu acknowledged that managing rare earth minerals is relatively new for the company. However, the company is optimistic about developing the sector, drawing on decades of experience in managing tin commodities. “What is needed is confidence to be ready and brave in managing it because its value is extraordinary,” he said. According to him, the economic value of tin-associated minerals has the potential to increase by tens of times if successfully processed into high-value products. For example, for power plant needs, solar energy, and raw materials for electric vehicles. “And this is a challenge for us at PT Timah. Fortunately, we are lucky now to have our partner; previously, we were alone for decades, but now Perminas, formed by the government in recent months, has started working with us to execute government programmes,” he said.