Prabowo Prioritises Downstreaming Despite Indonesia's Tariff Agreement with the US

President Prabowo Subianto has emphasised that openness to investment cooperation with the United States remains within the framework of national interests. He stressed that, despite discussions on tariff agreements with the US, all investments entering Indonesia must comply with applicable regulations, especially in the management of natural resources. In his statement, Prabowo highlighted the importance of implementing international market prices in the management of critical minerals. He affirmed that Indonesia does not close access to foreign parties, as long as they adhere to the provisions set by the government. “Regarding critical minerals. I have said, we are open. But everything at market price. At economic price,” the President stated in an interview quoted on Sunday, 22 March 2026. Furthermore, he explained that foreign involvement in the mining sector is not new. The government, he said, has long granted permits, such as in the case of Freeport, which now contributes significantly to the state’s revenue. “So if they want to follow (the rules), we permit them to mine at Freeport. It has been decades. Freeport now generates one of our largest revenues. We permit it,” he continued. Nevertheless, the President emphasised that the principle of downstream processing remains the primary requirement. Indonesia does not allow the export of raw materials without processing in the country. “Raw materials, we ask to be processed. If they want to mine and process here, of course,” he asserted. He also reiterated that critical minerals are commodities that must provide maximum economic value for Indonesia. “Critical minerals are a commodity. If they pay international market price, whether they operate or we do, we get the economic value. The important thing is we give access,” he said. Thus, foreign investment remains open, but it must submit to national regulations and support downstream processing.