Indonesia seeks critical mineral supply chain with Latin America

Speaking at a press briefing in Jakarta on Monday, the ministry’s Director General for American and European Affairs Grata Endah Werdaningtyas highlighted the shared potential between Indonesia and the region as major primary resource suppliers.

“One of the sectors we are pursuing is critical minerals. This is the sector that will support the industries of the future,” Grata stated.

She noted that the Latin American and Caribbean region currently accounts for 40 percent of global mining commodities and supplies 35 percent of global lithium production.

Additionally, the region produces 90 percent of the world’s niobium—a key material used to reinforce steel and manufacture superconductors—with Brazil serving as the primary producer.

For Indonesia—already a global powerhouse in nickel and bauxite—partnering with heavyweights like Brazil and Chile is about more than just trade; it is a bid to reshape global trade dynamics.

Historically, according to Grata, developing nations rich in natural resources have been relegated to exporting raw materials while developed nations captured the high-value processing and technological stages.

“We need to collaborate with them; when they lack nickel, we have it. It is about how we develop our own supply chain to elevate our position or standing within this entire future industry,” she explained.

The diplomatic push will focus on increasing value-added processing, securing midstream investments, and fostering technical cooperation in mining and clean energy technologies.

To advance the strategic vision, the Foreign Affairs Ministry will convene the Indonesia-Latin America and the Caribbean (INA-LAC) Business Mission in Santiago, Chile, from October 1 to 2, 2026.

The event will include a dedicated energy and mining business forum, enabling Indonesian companies to present tangible partnership opportunities to regional counterparts.

Translator: Nabil Ihsan, Yashinta Difa