Indonesia Set to Build Rare Earth Mineral Processing Plant Soon

PT Timah (Persero) Tbk (TINS) is preparing to build a rare earth mineral processing plant, with groundbreaking set to take place on 20 May 2026. This plant for the world’s most sought-after mineral is part of directives from Indonesian President Prabowo Subianto.

Timah’s President Director, Restu Widiyantoro, explained that the construction of this plant represents a new milestone for the company, as rare earth mineral processing has never been undertaken before.

“And this is the main challenge because the current government, under President Prabowo, has even ordered us, as close as 20 May, to conduct the groundbreaking for the rare earth mineral plant project,” said Restu during a hearing with Commission VI of the Indonesian House of Representatives, quoted on Wednesday (8/4/2026).

Restu revealed that Prabowo has given direct instructions for the project to be realised immediately, with a target to accelerate monetisation. At the latest, within two years after construction begins, the plant should be able to produce economically valuable products.

“The groundbreaking will take place on 20 May, and the President has ordered that monetisation must occur as soon as possible or at the latest within two years, there must be monetised products. That means it can already generate revenue for the state,” he stated.

According to him, managing rare earth minerals is relatively new for the company. Nevertheless, they are optimistic about developing the sector, drawing on decades of experience in managing tin commodities.

“What is needed is confidence to be ready and bold in managing it because its value is extraordinary,” he said.

The economic value of tin-associated minerals has the potential to increase by tens of times if successfully processed into high-value products, such as for power plants, solar energy, and electric vehicle raw materials.

“And this is a challenge for us at PT Timah. Fortunately, we are lucky now to have our partner; previously we were alone for decades, but now Perminas, formed by the government in recent months, has started working with us to execute government programmes,” he said.