Indonesia Grants US Access to Critical Minerals, Deputy Minister of Investment: Downstream Processing Remains Mandatory
Bisnis.com, Jakarta — The government has assured that granting access to US investors for the development of the critical minerals sector, including rare earth elements, as stipulated in the Agreement on Reciprocal Trade (ART), will not affect the commitment to downstream processing.
Deputy Minister of Investment and Downstream Industry/Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu, believes that Washington’s request to open access for US businesses to strategic mineral sectors is not a threat, but rather a common business practice, as long as it complies with national downstream processing regulations.
“The discussion has already taken place. Essentially, the US has requested that its businesses be given access to our mineral sectors, including rare earth. This is not a problem, and we may do the same for all countries,” he said at the BKPM office in Jakarta, Thursday (February 26, 2026).
For information, in the ART document, Article 6.1 and its explanation (Annex III Article 6.1) state that Indonesia is obliged to allow and facilitate US investment related to critical minerals, starting from the exploration, mining, extraction, processing, to export stages.
Furthermore, the regulation also guarantees that US investors will receive equal or no less favorable treatment compared to domestic investors (national treatment).
Todotua stated that the ease of access for US exploitation and exploration of Indonesia’s natural resources does not mean loosening sovereignty over raw materials. He added that regulations still prohibit the export of raw minerals.
“As long as it is done under the rule that if they want to enter, they must invest. In the process, because our country does not allow raw materials to be exported according to law, there is a process, there is investment, [then] they can enter. It is actually just a normal business-to-business transaction,” explained Todotua.
As a form of compensation for opening access to these minerals, the ART document also mandates a reciprocal scheme. The US government is encouraged to facilitate investment financing in Indonesia’s critical sectors through its financial institutions, such as the Export-Import Bank of the United States (EXIM Bank) and the U.S. International Development Finance Corporation (DFC), in collaboration with the US private sector.
On the other hand, Indonesia’s position is not only as a recipient of foreign capital. Based on Annex III, Indonesia is also mandated to facilitate investment in the development of new facilities (greenfield investment) that can create jobs in the United States.