Minister Bahlil Addresses Stalled Indonesian Nickel Exports Due to Rare Earth Elements
Jakarta, CNBC Indonesia — Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has spoken out regarding disruptions to several of Indonesia’s nickel exports caused by the presence of Rare Earth Elements (REE) as accompanying minerals.
As is known, a number of nickel pig iron (NPI) shipments were reportedly held up because they must undergo additional testing for REE content before obtaining export permits.
Bahlil acknowledged that checks by the Ministry of Energy and Mineral Resources found that several mineral downstream products, such as nickel and copper, still contain rare earth elements. However, he said this occurs because some downstream products, such as nickel pig iron (NPI), are not yet final products.
“Here’s the thing — after my team checked, it turns out there are several products from the downstream processing industry that are exported, for example nickel or copper, which indeed contain a certain level of rare earth elements. They are accompanying minerals, really,” Bahlil said when met at the Ministry of Energy and Mineral Resources on Monday (3/8/2026).
He went on to explain that Indonesia does not yet have an industry specifically processing the REE contained as accompanying minerals. According to him, products such as NPI are still at a processing stage of around 40–50%.
“There will certainly still be other mineral components mixed in — there’s iron, all sorts of things. After all, it’s only 50% processed,” he said.
For this reason, the government is currently mapping out comprehensive steps towards a resolution so that industrial activities run by investors can continue. At the same time, the ministry is also preparing management or channelling mechanisms for REE as accompanying minerals.
“As for us at the Ministry of Energy and Mineral Resources, we handle the upstream side and industrial permits. The products themselves fall under another ministry. Then for exports, that’s under the ministry with the authority over exports. So the Ministry of Energy and Mineral Resources is not a ministry with absolute power over everything — no such thing. That’s how it is,” Bahlil said.