Indonesian Political, Business & Finance News

Ministry of Industry: Electrification in Mining Sector Requires Special Scheme

| Source: CNBC Translated from Indonesian | Mining
Ministry of Industry: Electrification in Mining Sector Requires Special Scheme
Image: CNBC

Jakarta, CNBC Indonesia - The Ministry of Industry (Kemenperin) has stressed that establishing an electrification ecosystem in the mining sector cannot be equated with the public transportation sector. The complex operational nature of mining poses challenges in promoting electric vehicle adoption in this sector.

Director of the Agricultural Machinery and Equipment Industry (IPAMP) at the Ministry of Industry, Solehan, explained that mining field conditions demand far higher requirements than other sectors. This necessitates more specific policies.

“Mining activities indeed operate with high intensity, heavy terrain, remote areas, and demand very high unit reliability. Therefore, the transformation towards electric vehicles, particularly in mining, requires a comprehensive, measured approach based on industry needs,” he said at the EV Transition in Mining Industry Outlook 2026 event on Wednesday (29/4/2026).

The government does not only act as a regulator but also as a facilitator in this transition process. This role is crucial to provide direction for industry players in making investments.

In practice, electrification in the mining sector goes beyond simply replacing fuel-based engines with electric ones; it extends to building a comprehensive ecosystem supporting overall operations.

“Policy focus is not only on replacing heavy equipment based on ICE (Internal Combustion Engine) with electric, but also on building the ecosystem itself that supports operational efficiency, emission reduction, and increased competitiveness of the domestic mining sector,” Solehan stated.

Solehan outlined that the current electrification direction covers two main aspects: operational fleets and supporting infrastructure. Both must proceed in tandem for optimal implementation.

Several heavy equipment items, such as dump trucks and hybrid vehicles, are beginning to be introduced, while others like excavators are still in the investment development stage. Meanwhile, infrastructure such as charging stations and energy systems is also a priority.

“Electrification in the mining sector is directed at least towards two main aspects. The first is the operational fleet itself, followed by supporting infrastructure such as charging stations, integration of renewable energy including BESS (Battery Energy Storage System),” said Solehan.

Nevertheless, current regulations are still limited to passenger electric vehicles on public roads. This leaves implementation in the mining sector without fully adequate legal coverage.

The government is currently preparing a new policy framework that is more relevant for off-highway sectors like mining, to accelerate the adoption of electric technology in that area.

“Well, with the existing Presidential Regulation still focused on public roads, it is hoped that the scope will be expanded, perhaps through additional regulations for off-highway areas in mining,” Solehan remarked.

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