MIND ID Confident Local Supplier Involvement Strengthens National Economy

“From the supply chain and social perspective, we see the involvement of local and domestic suppliers as very important.”

Jakarta (ANTARA) - The state-owned mining industry holding company MIND ID believes the involvement of local and domestic suppliers is vital to strengthening the national economy.

Speaking in Jakarta on Wednesday, Binahidra Logiardi, Division Head of Sustainability at MIND ID, said that as a mining industry holding company, it is not only focused on improving business and operational performance but is also proactive in its role as a driver of national economic development through the involvement of local suppliers.

As part of this commitment, MIND ID Group consistently maintains that more than 90 per cent of its suppliers are local and domestic businesses.

This step is taken to encourage the use of the Domestic Component Level (TKDN) whilst expanding economic benefits in the regions, in line with the government’s efforts to strengthen national economic sovereignty.

“From the supply chain and social perspective, we see the involvement of local and domestic suppliers as very important. The TKDN is one of the measures of our operational and business achievements,” he said.

Furthermore, he said the company continues to monitor the composition of its suppliers so that the proportion of local and domestic businesses remains above 90 per cent of total suppliers across the entire Group. In this way, the economic benefits of mining industry activity can also be felt by communities and regions surrounding the operational areas.

The involvement of local suppliers is carried out comprehensively, from the exploration phase through to product marketing. Its scope includes the provision of fuel, heavy equipment, spare parts, contractor services and distribution activities.

This approach is considered capable of strengthening regional economies, mitigating the risk of supply disruptions, and improving the company’s operational effectiveness.

The strengthening of the domestic supply chain also aligns with government policy to reinforce the structure of national industry through increased use of domestic products and services, as well as the development of mineral downstream processing.

These efforts are expected to increase national industrial capacity, broaden employment opportunities, and magnify the multiplier effects for the economy.

“As a state-owned enterprise, we are an agent of development, so the economic impact is very important. We support the government’s programme to strengthen national economic sovereignty,” Binahidra said.