Indonesia Intensifies Efforts to Develop Rare Earth Elements, Evidence Shows
Jakarta, CNBC Indonesia - The government has begun serious efforts to develop rare earth elements (REE) in Indonesia. This commitment is evidenced by the formation of the Mineral Industry Agency (BIM) and the preparation of PT Perminas to manage the national development of rare earth metals.
Irwandy Arif, Chairman of the Indonesian Mining Institute (IMI), stated that the development of REE is not a new concept in Indonesia. The origins can be traced back to monazite, a mineral by-product of tin mining, particularly within the operations of PT Timah.
“In the industry, the investigation into the presence of rare earth elements within monazite by-products at PT Timah has been ongoing for a very long time; that is the foundation of what we are discussing now,” said Irwandy during a webinar hosted by the Mineral Industry Agency (BIM) regarding the prospects and future of Indonesia’s rare earth metal industry, as reported on Monday (18/5/2026).
According to Irwandy, the government’s focus on the future of the REE industry is becoming increasingly tangible. In addition to the creation of BIM, the government has also established PT Perminas to oversee the development of rare earth elements and other strategic minerals.
“This is actual proof of the government’s seriousness in developing rare earth elements in Indonesia,” he added.
Irwandy explained that his research regarding REE, which has been published in book form, began approximately five years ago. During that period, the government also started drafting the classification of critical and strategic minerals, which was subsequently published in 2023.
He noted that during his tenure as a special staff member at the Ministry of Energy and Mineral Resources (ESDM), he was involved in drafting these policies alongside the Directorate General of Mineral and Coal (Minerba).
“I believe this is now being followed up by the government through the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) to pioneer cooperation with the United States and the European Union, specifically regarding critical minerals,” he concluded.