Indonesia Seen as Investment Magnet for Critical Minerals Sector
JAKARTA — Indonesia is considered an attractive investment destination within the critical minerals sector. The Chairman of the Indonesian Nickel Industry Forum (FINI), Arif Perdana Kusumah, stated that the development of downstream mineral industries, specifically nickel, is expected to continue attracting significant new investments in the coming years.
According to Kusumah, the installed capacity of High Pressure Acid Leach (HPAL) facilities in Indonesia has reached 600,000 tonnes of nickel per year. He added that an additional capacity of approximately 400,000 tonnes is currently under development, representing an investment of around US$20 billion. He noted that Indonesia’s greatest future opportunity lies in developing high-value-added downstream industries that support the energy transition and advanced technologies.
“Nickel, bauxite, copper, tin, rare earth elements, and radioactive minerals are strategic resources possessed by Indonesia that can continue to be developed,” he explained.
Teuku Rezasyah, an International Relations expert from President University, observed that global competition for critical minerals is intensifying. He argued that nations possessing mineral resources must be capable of managing and utilising their natural wealth independently to maximise benefits from the changing geopolitical landscape. He also emphasised the importance of human resource development to support the future management of the critical minerals industry.
Meanwhile, a member of the National Economic Council (DEN), Septian Hario Seto, stated that downstreaming is a crucial factor in strengthening the national economy. He explained that processing natural resources domestically not only creates greater added value but also attracts investment, increases exports, and strengthens economic resilience.
“Downstreaming attracts foreign direct investment, generates export revenue, and brings foreign exchange into the country. Although investors may eventually repatriate dividends, export revenues are expected to be far greater than such outflows,” said Seto.