Minerals and Coal PNBP Reaches Rp56 Trillion; MIND ID Smelter Downstreaming Becomes Driving Engine

Jakarta, CNBC Indonesia - The Directorate General of Mineral and Coal (Minerba) at the Ministry of Energy and Mineral Resources (ESDM) notes that non-tax state revenue (PNBP) from the mineral and coal sector for the period January–April 2026 reached Rp48.95 trillion. This data shows that the mineral downstream programme is having a tangible impact on state revenue. By 15 May 2026, the figure had risen to around Rp56 trillion, or a year-on-year growth of 6.21%. Behind these achievements, several smelters within the MIND ID ecosystem have become the main support for strengthening the national mineral processing industry.

Director General of Mineral and Coal Tri Winarno said three projects that have been completed and are now in operation are: ANTAM’s smelter in Pomalaa, PT Vale Indonesia Tbk in Sulawesi, and PT Freeport Indonesia’s copper smelter at JIIPE Gresik.

‘Especially for PT Freeport’s copper smelter in JIIPE Gresik, its presence is one of the key milestones to strengthen domestic copper concentrate refining capacity,’ Tri said in a formal statement released on Friday (22 May 2026).

Overall, the government notes there are 14 integrated smelters that are part of the national mineral downstream programme, comprising six nickel smelters, six bauxite smelters, one copper smelter, and one iron smelter. Of these, five smelters have been completed and nine remain under construction, with a total investment realisation of US$7.8 billion.

The capacity of the established processing industry is considerable. The integrated nickel smelters have an input capacity of 24.9 million tonnes per year, with an output of 924,780 tonnes per year. The copper smelter has an input capacity of two million tonnes per year and an output of 460,000 tonnes of cathode per year.

Meanwhile, the bauxite smelters can process 19.6 million tonnes per year with an alumina output of 7.4 million tonnes per year.

‘These figures show that the base for the mineral processing industry is beginning to take shape,’ Tri said.

The government emphasises that the downstream target will not stop at physical construction alone. Each smelter must operate productively, be competitive, and add value to the national economy. ‘The government does not only view downstream from physical construction, but also from operational readiness, supply continuity, environmental compliance, and adherence to licensing regulations,’ he added.

This progress has received a positive response from the House of Representatives Commission VII. Golkar Party faction member Yusman praised the achievement and urged the government to provide more detail on the progress of the smelters still under completion.

‘From the 14 companies, five have completed. It may be useful to provide more detailed progress, such as what percentage is finished,’ Yusman said.

Similarly, PAN faction member Alfont urged the government to accelerate the completion of remaining smelters so their impact on the national economy can be greater.

‘How can we push this forward? We need to fast-track so these smelters finish and production can operate; we must be able to drive the economy,’ Alfont said.

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