New Discovery: Rare Earth Elements in Sulawesi Found as Primary Minerals, Not Just By-Products
Jakarta, CNBC Indonesia - Commission XII of the Indonesian House of Representatives (DPR) has revealed the potential for Rare Earth Elements (REE) in Sulawesi, which differs from the reserves previously known in Bangka Belitung. While in Bangka Belitung, rare earth elements are found as by-product minerals from tin mining, in Sulawesi, this strategic commodity is reportedly found as the primary mineral. This was disclosed by the Chairman of Commission XII DPR RI, Bambang Patijaya.
According to Bambang, one source of rare earth elements in Indonesia has so far come from Bangka Belitung. However, its presence there is obtained as a by-product of tin mining activities. “In Bangka Belitung, the primary mineral is tin. But during the tin mining process, several associated minerals are obtained. Among them are xenotime and also what is called monazite. And it turns out that monazite contains rare earth elements,” Bambang told CNBC Indonesia in an Economic Update programme, quoted Wednesday (24/6/2026).
However, he revealed that his party received a report regarding the existence of rare earth elements in Sulawesi with different characteristics. In that region, the strategic mineral is reportedly found directly as the primary mineral. “There, the Mineral Industry Agency, or Perminas, has already obtained an IUP from the Ministry of Energy and Mineral Resources related to Rare Earth Elements. So, there is an area where, when rare earth element mining is carried out, it is obtained directly as the primary mineral. Whatever it is, the point is we have it,” said Bambang.
Previously, PT Timah (Persero) Tbk was preparing to build a rare earth mineral processing plant, with a groundbreaking scheduled for 20 May 2026. This globally sought-after mineral processing facility is part of a directive from President Prabowo Subianto. Timah’s President Director, Restu Widiyantoro, explained that the construction of this plant marks a new milestone for the company, as rare earth mineral processing has never been undertaken before.
“And this is the biggest challenge because the government, specifically the President, has ordered us to conduct the groundbreaking for the rare earth mineral plant on 20 May,” Restu said during a Hearing Meeting with Commission VI of the DPR RI, quoted Monday (6/4/2026). Restu detailed that Prabowo has given direct instructions for the project to be realised immediately, with a target for accelerated monetisation. At the latest, within two years after construction begins, the plant must be able to produce economically valuable products.
According to him, managing rare earth minerals is a relatively new venture for the company. Nevertheless, the company is optimistic it can develop this sector, drawing on decades of experience in managing tin commodities. “The only thing needed is the confidence to be ready and brave to manage it because its value is extraordinary,” he said. The economic value of tin’s associated minerals could potentially increase tens of times if successfully processed into high-value products, such as for power generation, solar energy, and raw materials for electric vehicles.
“And this is a challenge for us at PT Timah. Fortunately, we now have a partner. Previously, we were alone for decades, but now Perminas has been formed by the government in recent months and has started working together with us to execute government programmes,” he stated.