Minister Bahlil Addresses Stalled Indonesian Nickel Exports Due to Rare Earth Elements

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has spoken out regarding the disruption to exports of several Indonesian nickel products due to the presence of Rare Earth Elements (REE) as associated minerals. A number of nickel pig iron (NPI) shipments have reportedly been held up because they must undergo additional testing for REE content before obtaining export permits. Bahlil acknowledged that checks by the ESDM Ministry found that some downstream mineral products, such as nickel and copper, still contain rare earth elements. However, this occurs because some downstream products like NPI are not yet final products. “After my team checked, it turns out that some downstream industry products being exported, for example nickel or copper, still contain certain levels of rare earth elements. It is actually an associated mineral,” Bahlil said when met at the ESDM Ministry on Monday. He further explained that Indonesia does not yet have an industry that specifically processes the REEs found as associated minerals. According to him, products like NPI are still at an intermediate processing stage of around 40 to 50 percent. “Of course, it still contains other mineral components, there is iron and various other things. That is how it is,” he said. Therefore, the government is currently mapping out a comprehensive solution so that industrial activities run by investors can continue. On the other hand, the ministry is also preparing a mechanism for managing or channelling the rare earth elements as associated minerals. “At ESDM, we handle the upstream side and the industrial permits. The product itself falls under another ministry. Then for exports, that is under the ministry that has the authority for exports. So the ESDM Ministry is not an all-powerful ministry, no,” Bahlil stated.