Government Clarifies Rare Earth Export Ban, Allows Shipments of Nickel and Tin Products

The government has confirmed that the export ban on rare earth elements (LTJ) is only applicable to LTJ as a primary product, not to mining commodities where LTJ is present as an associated mineral. Chief of the Presidential Staff Office (KSP) Dudung Abdurachman stated that this decision was made to provide legal certainty and resolve export hurdles for commodities that have already undergone downstream processing and refining within the country, such as nickel, alumina, and copper.

“So, the export ban on LTJ applies to LTJ as a primary product. It does not automatically apply to the LTJ content found as an associated mineral in other primary mining products and their derivatives,” Dudung explained during a press conference at the KSP office in Jakarta on Monday.

This understanding will serve as a transitional guideline for exporters, surveyors, and Customs to ensure a unified interpretation during the export process. Concurrently, the government is preparing a legal opinion from the Attorney General’s Office to strengthen legal certainty while regulations are being refined. Following coordination on 31 July 2026, Dudung confirmed that PT Sucofindo has been authorised to issue surveyor reports for previously stalled commodities, allowing exports to resume. He noted that around 120 ships had been unable to sail due to the regulatory confusion.

The issue had caused significant concern among industry players. The Chairman of the Indonesian Nickel Industry Forum (FINI), Arif Perdanakusuma, previously highlighted that the unclear regulations regarding LTJ as an associated mineral had severely disrupted export activities. He also pointed to other pressures on the nickel industry, including geopolitical impacts that caused a surge in sulphur prices from around US$220 per ton to US$1,200 per ton, significantly increasing production costs.