Indonesia Grants US Access to Critical Minerals, Deputy Minister of Investment: Downstream Processing Required
KONTAN.CO.ID – JAKARTA. The Indonesian government is opening up access to critical mineral exports to the United States as part of a reciprocal trade agreement, known as the Agreement on Reciprocal Tariff (ART). This access includes strategic commodities, ranging from nickel to rare earth metals.
Deputy Minister of Investment and Downstream Industrialization/Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu, stated that discussions regarding investment cooperation between Indonesia and the US in the critical mineral sector are still focused on providing access for businesses, rather than being a specific inter-state commitment.
According to him, the US request is essentially related to opportunities for their companies to enter the Indonesian mineral sector, including supporting infrastructure such as railways. The government views this as a normal business practice as long as it follows the regulations in force within the country.
In line with this, he emphasized that Indonesia remains committed to the principle that minerals cannot be exported in raw form. Therefore, any investor wishing to enter must invest in the processing process within the country.
“If they want to enter, they must invest in the process. Our law does not allow raw materials to be exported as is,” he said.
He affirmed that this policy applies not only to the US but also to all countries. The government opens up the same access as long as investors implement a downstream scheme and meet regulatory requirements.
Thus, the cooperation that occurs is more of a business-to-business (B2B) arrangement between business actors, rather than in the form of special treatment that violates the principle of equal investment.
Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said that discussions on cooperation with the US include all strategic sectors, including mineral downstreaming. The government also ensures that investment opportunities for US companies in the critical mineral sector are wide open.
“Critical minerals have been discussed with the export agency in America and several other parties. In fact, there is an American company that has spoken directly with critical mineral companies in Indonesia,” said Airlangga when met at Pondok Indah Mall, Jakarta, Friday (December 26, 2025).
Airlangga revealed that the Nusantara Future Investment Management Agency (Danantara) will act as the main liaison with a business-to-business (B2B) scheme. Interest from US corporations comes not only from established players but also from global technology and automotive companies such as Ford Motor Company and Tesla, which are targeting the development of electric vehicle battery ecosystems.
He affirmed that opening access to critical minerals for the US is not a new policy. According to him, US investment in the Indonesian mining sector has been ongoing for decades.
Airlangga cited Freeport McMoran, which has been operating in the copper sector since 1967 and now has a refining facility in Gresik. In addition, Vale has also been working on the nickel sector in Indonesia since the 1970s.
Furthermore, Airlangga explained that the critical minerals needed by the US include copper, nickel, bauxite, and rare earth metals, which are by-products of tin. This need is not only for the development of electric vehicles but also to support the defense and high-tech sectors.
“This access is needed for the automotive, aviation, rocket, defense, and marine sectors,” he said.