Indonesia Seeks Greater Gains from Critical Mineral Downstreaming
Indonesia Eyes Bigger Gains From Critical Mineral Downstreaming
24 Okt 2026 19:06 WIB
Voice of Indonesia
Poin Utama
Indonesia has the opportunity to increase its export revenue through the downstream processing of critical minerals.
A 407 GWh battery capacity gap highlights Indonesia’s urgent need for new investment and stronger domestic manufacturing.
RRI.CO.ID, Jakarta, Indonesia has an opportunity to increase export revenue by expanding downstream processing of critical minerals, particularly by developing the battery and electric vehicle (EV) industries.
However, realizing the full value of these resources will require significant new investment to strengthen domestic processing capacity and industrial capabilities.
Managing Director for Development Investment at PT Danantara Development Management Fund (DDMF), M. Rachmat Kaimuddin, said processing capacity alone is insufficient to capture the maximum value from critical minerals.
“To obtain optimal value from critical minerals, processing capacity alone is not enough. Coordinated investment, stronger domestic capabilities, resilient supply chains, and partnerships capable of mobilizing capital for development financing and private investment are also needed,” Rachmat said in a statement in Jakarta on Saturday, Oct. 24, 2026, as quoted by Antara.
Data from the Ministry of Industry highlights the scale of value creation available through downstream processing. Nickel ore, valued at around USD 30 per metric ton, can increase in value to USD 3,628 per metric ton when processed into mixed hydroxide precipitate (MHP), a key battery material.
At certain stages of battery production, the value-added potential can reach up to 642 times the value of raw nickel ore.
The National Economic Council (DEN) projects downstream product exports will reach USD 50 billion by the end of 2026, up about 45 percent from USD 34.5 billion in 2024.
According to Rachmat, the figures demonstrate that the greatest economic benefits from critical minerals are generated throughout the manufacturing value chain rather than from extraction alone.
The next major opportunity lies in developing Indonesia’s battery ecosystem.
The Ministry of Energy and Mineral Resources estimates that Indonesia’s battery demand will reach 108.2 gigawatt-hours (GWh) by 2030. To support national electric vehicle development targets, battery capacity is projected to reach 780 GWh, while currently available raw material capacity is estimated at 373 GWh.
This leaves an investment gap of approximately 407 GWh, highlighting the need for additional capacity development and investment.
Rachmat said cooperation among developing countries is essential to build stronger mineral value chains and ensure producer nations capture a larger share of the benefits from the global energy transition.
“ASEAN and African nations share a common interest in ensuring that the economic value of the energy transition does not flow only to manufacturing and technology hubs, but also strengthens the industrial capabilities of producer countries,” he said.
He added that downstream development’s success should not be measured solely by export growth.
For Indonesia, he said, investment must expand industrial capacity, increase productivity, strengthen competitiveness, and generate broader economic benefits. In that context, critical minerals are not merely a source of revenue but a tool for economic transformation.
According to Rachmat, Indonesia’s greatest opportunity no longer lies in the scale of its mineral production, but in its ability to convert resource advantages into industrial strength, technological capability, and more inclusive prosperity.
With quality investment and deeper industrialization, critical minerals could help elevate Indonesia’s position in the global industrial landscape. ***
News Recomendation
Memuat berita terbaru…..