Government Urged to Provide Regulatory Certainty for Intermediate Mineral Industry
The government is being urged to provide regulatory certainty as well as guarantees of fiscal and non-fiscal incentives to accelerate the development of the intermediate mineral industry in Indonesia. This step is considered crucial to ensure that national mineral downstreaming can progress to producing high-value-added products.
Bisman Bhaktiar, Executive Director of the Centre for Energy and Mining Law Studies (PUSHEP), stated that legal certainty is the main foundation for attracting investment in the advanced materials industry. He argued that without clear regulations, the development of the intermediate industry will be difficult to advance.
“Currently, the important thing is that the government needs to provide legal guarantees, regulatory certainty, and incentives, both fiscal and non-fiscal,” Bisman said in a statement in Jakarta, quoted on Friday (24/7/2026).
He assessed that Indonesia has actually succeeded in carrying out mineral downstreaming. However, the process is still dominated by semi-finished products, meaning the added value obtained has not been maximised. Bisman explained that the greatest added value lies in the advanced industry stages leading to final products. Therefore, the development of the intermediate industry needs to be accelerated as a bridge between mineral processing outputs and strategic manufacturing industries.
According to him, the government also needs to ensure that every cooperation with foreign investors includes technology transfer, not just capital investment. Furthermore, strengthening the quality of human resources and building a mineral-based industrial ecosystem are important factors to support the development of advanced materials domestically.
This issue emerged during the Danantara Advanced Materials Industry Dialogue 2026 forum initiated by Danantara Indonesia. The forum initiated collaboration between PT Mineral Industri Indonesia (Persero), or MIND ID, PT LEN Industri (Persero), PT Krakatau Steel (Persero) Tbk, and PT Perminas (Persero) to strengthen the development of mineral-based advanced materials for the needs of the national strategic industry.