Possessing 'Rare Treasure', This Is What the Indonesian Government Must Do
Jakarta, CNBC Indonesia - The Chairman of Commission XII of the Indonesian House of Representatives (DPR RI), Bambang Patijaya, has assessed that the development of the ‘super rare treasure’, or Rare Earth Elements (REE), in Indonesia cannot rely solely on regulation. At a minimum, the government also needs to prepare governance, technology, investment, and market access.
According to Bambang, rare earth elements are a commodity in very high demand on the global market. However, the supply chain and international trade governance are still dominated by a number of major countries.
‘What we need later is how the governance will be, then how the technology will be, then who will invest, and then how the market will be. Because remember, rare earth elements are a sexy commodity,’ Bambang told CNBC Indonesia in the Economic Update programme, quoted on Wednesday (24/6/2026).
He then explained that currently, mastery of the technology and market for rare earth elements is still in the hands of countries such as China, the United States, Canada, and France. In fact, Japan, which is known as a developed country in the manufacturing sector, is said to have not yet fully mastered this technology.
‘Remember, even Japan has not yet mastered the technological management for rare earth elements,’ he said.
Therefore, in his view, the government’s steps in preparing the management of the rare earth element industry are already on the right track, starting with the formation of an institution that will become the foundation for the sector’s development.
‘The Mineral Industry Agency (BIM) has been formed, which will later become the think tank and executor. Then there is the operator, Perminas, the company. Then we have the source of raw materials. Now, what we will execute later is what technology we want to use. Whatever technology we use, the investment will certainly come, if there is no investment from outside, it will definitely come from Danantara,’ he stated.