Indonesia's Strategic Minerals to Boost Industrial Competitiveness

The management of strategic minerals in Indonesia is becoming increasingly progressive, marked by ongoing downstream projects and strong operational performances by national mining companies. The positive performance posted by companies within the MIND ID Group during the first quarter of 2026 is a strong signal that the management of national strategic minerals will play an increasingly significant role in strengthening Indonesia’s industrial competitiveness and delivering tangible impacts on national economic growth. Amid global economic challenges and continued commodity market pressures, several MIND ID Group members managed to record solid production and sales growth. This performance demonstrates that strategic commodities such as tin, nickel, copper, gold, bauxite, alumina, and coal remain an important foundation for national industrial development. Executive Director of Indonesia Mining & Energy Watch, Ferdy Hasiman, assessed that the operational performance of MIND ID Group members during the first three months of this year shows a positive and consistent direction. According to him, the first quarter was quite good, though perhaps not yet optimal because Freeport’s production was not maximised. ‘Freeport’s dividend contribution is quite substantial. Then from Antam, its profit is large. I also appreciate PT Timah. This is historic because just in the first quarter it has already posted a profit of more than Rp 1 trillion,’ Ferdy stated. One of the most outstanding achievements came from PT Timah Tbk. The company succeeded in increasing tin ore production by 96 percent to 6,312 tonnes of Sn compared to the same period last year. Tin metal production also increased by 82 percent to 5,630 metric tonnes, while tin metal sales surged 113 percent to 6,009 metric tonnes. This performance reflects Indonesia’s strengthening position as one of the world’s leading tin producers. In the downstream mineral sector, PT Aneka Tambang Tbk (ANTAM) recorded significant progress in its bauxite and alumina business. Bauxite sales increased by 9 percent to 593,476 wet metric tonnes, while Chemical Grade Alumina (CGA) production rose 13 percent to 49,566 tonnes and sales increased 11 percent to 49,072 tonnes. This achievement shows the growing importance of downstream processing in creating domestic mineral added value. PT Vale Indonesia Tbk meanwhile managed to increase nickel sales volume by 15 percent to 45,000 tonnes in the first quarter of 2026. This is a strong indicator that demand for critical minerals needed for electric vehicle batteries and clean energy is growing. PT Freeport Indonesia is still facing the impact of a mud rush incident that occurred in September 2025, with copper production recorded at 95 million pounds and gold production at 92,000 ounces. Ferdy noted that these achievements show strategic commodities such as nickel, gold, tin, copper, and coal remain critical pillars for strengthening national industry, especially as global demand for critical minerals continues to rise. Besides operational performance, strengthening national industrial competitiveness is also supported by a number of strategic projects run by MIND ID Group members. PT Freeport Indonesia is continuing the development of the Grasberg underground mine in Papua and the operation of the Precious Metal Refinery (PMR) facility in Gresik. In the coal sector, PT Bukit Asam (PTBA) is continuing the development of a Dimethyl Ether (DME) downstream project projected to substitute national LPG imports. In the critical minerals sector, ANTAM is accelerating the development of the Smelter Grade Alumina Refinery (SGAR) project in Mempawah, West Kalimantan, and is involved in building an integrated electric vehicle battery ecosystem project in East Halmahera. PT Timah is also beginning to develop the potential of rare earth elements through monazite processing.