Ministry of ESDM: US Companies Must Invest if They Want Access to Minerals
Access to Indonesia’s critical minerals for the United States requires investment and domestic processing, according to Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu.
“Basically, the US request to grant American companies access to our mineral sectors, including rare earths, is not a problem,” he said after the Socialization of PP 28/2025 in Jakarta, Thursday (February 26, 2026).
He affirmed that Indonesia remains committed to the rule prohibiting the export of raw materials without processing. Therefore, every investor entering the mineral sector is required to invest in domestic processing.
“As long as they comply with the rule that if they want to enter, they must invest in processing. Because our country, by law, does not allow the export of raw materials. There is a process, downstream processing, investment, and then they can enter,” said Todotua.
With this scheme, the government ensures that the cooperation built is equal and mutually beneficial.
“It’s just a normal business-to-business arrangement,” he said.
Furthermore, Todotua explained that the government has set annual investment targets and is encouraging priority sectors based on downstreaming, with a total investment value of IDR 13,000 trillion over the next five years.
“We already have a big plan for investment. There are annual investment targets that we must achieve. There are priority sectors that we are encouraging, especially in relation to the concept of downstreaming,” he said.
He believes that downstreaming provides significant growth while ensuring that natural resources are processed domestically, creating added value and strengthening the national industrial ecosystem.
“We are ready, they ask for access, okay, we will allow it. As long as they invest in downstreaming, in processing, we will provide access. It’s equal trade,” he emphasized.
The government has also prepared a downstreaming roadmap for 28 strategic commodities that represent investment opportunities for global partners.
“This is not just about America. But also about Europe, Japan, China, Korea and others,” said Todotua.
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia affirmed that strategic mineral commodities must still undergo downstreaming, even if there is a trade agreement for these strategic mineral commodities with the United States.
According to Bahlil, in a statement quoted in Jakarta, Saturday (February 21), amid geopolitical dynamics and increasing global demand for critical minerals, Indonesia reaffirms its bargaining position on the global stage.
The bilateral meeting between Indonesian President Prabowo Subianto and US President Donald Trump in Washington, DC, US, Thursday (February 19, 2026) local time, became an important moment in strengthening the partnership between the two countries through the Agreement on Reciprocal Trade (ART).