MIND ID directs mining to become the basis for national industrialisation
Jakarta (ANTARA) - The Indonesian Mining Industry Holding Company, MIND ID, is directing national mineral management to no longer rely solely on extraction activities and commodity sales, but to evolve into a basis for industrialisation to create added value and strengthen Indonesia’s economic structure.
“The Government has tasked MIND ID with ensuring that Indonesia’s mineral wealth does not stop at the extraction process. These natural resources must serve as the foundation for industrialisation capable of strengthening the national economic structure and enhancing Indonesia’s economic sovereignty,” said Selly Adriatika, MIND ID’s Division Head of Institutional Relations, in a statement in Jakarta on Sunday.
Selly stated that this transformation is necessary given that Indonesia possesses vast strategic mineral reserves, meaning the economic benefits must be optimised through processing, downstreaming, and the development of domestic industries.
According to her, large natural resource reserves do not automatically produce optimal economic benefits if management remains focused on commodity sales and remains highly dependent on global market price movements.
Therefore, the development direction of the mining industry needs to be expanded through the strengthening of domestic mineral processing, the construction of downstream industries, the integration of strategic mineral value chains, and the creation of products and raw materials required by national industries.
Data from the Geological Agency shows that Indonesia holds approximately 42 per cent of the world’s nickel reserves. Indonesia also holds a strategic position in the reserves of several other commodities, including tin, bauxite, gold, copper, and coal.
According to Selly, the vastness of these resources presents an opportunity for Indonesia to transform from a commodity supplier into a resource-based industrial nation with higher economic added value.
This transformation is also considered vital because minerals and coal are non-renewable resources.
Consequently, their management must generate greater and long-term economic benefits, including through the growth of investment, processing industries, technological mastery, and derivative economic activities.
Selly noted that developing mineral value chains also requires strategic partnerships with industrial players and international investors, particularly to accelerate technology transfer and mastery while expanding market access for Indonesia’s downstream products.
At the same time, the integration of various strategic mineral value chains needs to be strengthened so that mining does not develop as an isolated economic activity, but rather connects with the manufacturing sector and its derivative industries.
This step is expected to create new sources of economic growth while reducing the mining sector’s performance dependence on commodity exports and raw material price fluctuations in the global market.
MIND ID also places the strengthening of state control over strategic mineral resources as part of the direction for national mining management, as mandated by Article 33 of the 1945 Constitution regarding the utilisation of the earth, water, and natural wealth for the greatest prosperity of the people.
Within this framework, control over strategic mineral and coal reserves, including assets previously controlled by foreign parties, is directed to provide greater economic benefits for Indonesia and strengthen the state’s position in managing natural resources.
“Our goal does not stop at mine management. What we want to achieve is how all of Indonesia’s natural resource wealth can be optimised to strengthen economic sovereignty and provide the greatest possible benefits for Indonesia,” said Selly.