Sole Focus on Industry Draws Attention to Commodity Supply Balance

Jakarta, CNBC Indonesia - Deputy for Energy and Mineral Resources at the Coordinating Ministry for Economic Affairs, Elen Setiadi, has emphasised the importance of regulating the balance between supply and demand for mining commodities. According to him, Indonesia currently focuses only on industrial development.

“Don’t forget, regulating that balance is important, that domestic interests are paramount, but how to prepare domestic needs is also an important part,” Elen stated during the MINDialogue 2026 “Commodities for the Nation: Strategy for Strengthening Mineral Reserves for Indonesia’s Economic Stability and Sovereignty” on Thursday (13/8/2026).

He stressed that the growing mining industry still requires off-takers, or parties acting as standby or permanent buyers committed to accommodating, absorbing, or purchasing production output from producers.

“So this balance is what we need to create while accelerating the push, one of which is Danantara’s task, how we try to encourage Danantara to make investments,” he said.

He cited coal reserves in South Sumatra, which reach approximately 1 billion tonnes. To utilise these reserves, the coal is processed into Dimethyl Ether (DME) as a substitute for Liquefied Petroleum Gas (LPG).

“The push for DME is already complete. It now remains for Danantara to finalise the investment mechanism. If that is in place, and there is a product, we can develop it and so on. We who previously sold gas could even replace LPG,” Elen explained.