Two Ways US Companies Can Enter and Develop Indonesia's Mineral Mines
Energy and Mineral Resources Minister Bahlil Lahadalia has said that American companies can enter and develop Indonesia’s mineral sector following the signing of a trade agreement between the two countries.
The trade agreement between Indonesia and the United States was previously signed by President Prabowo Subianto and President Donald Trump in Washington DC on Thursday (19/2/2026).
Bahlil affirmed that Indonesia adheres to the principle of a free and active economy, providing equal investment opportunities to all countries including the US, whilst requiring compliance with Indonesian regulations.
“For critical minerals, we have agreed to facilitate US companies in making investments, whilst respecting the regulations in force in our country. We will also give priority to supporting and facilitating execution, including investment,” Bahlil said, as quoted from the Ministry of Energy and Mineral Resources website on Monday (23/2/2026).
Bahlil confirmed there would be no change in policy regarding raw mineral exports, as the Indonesian government remains committed to its national downstreaming programme and has no plans to open the tap on raw commodity exports.
“So let’s say they build a smelter in Indonesia for nickel — we will encourage it, we will give them the widest possible space, just as we would for any other country. So do not interpret this as us opening up raw commodity exports. What is meant here is that after they carry out refining, the results can then be exported. Let me be clear, so there is no misinterpretation,” Bahlil stressed.
Bahlil cited existing cooperation as an example, such as the investment made by Freeport Indonesia in building a copper smelter facility worth nearly USD 4 billion, which is one of the largest in the world. He said a similar model could be applied to the development of other critical minerals such as nickel, rare earth metals, and gold.
In its implementation, the government is offering two investment schemes for US companies. First, offering US companies the opportunity to conduct mineral exploration directly.
Second, through partnerships or joint ventures with Indonesian state-owned enterprises (BUMN).
“Once they are in production and have built a smelter or downstream processing facility, they have the right to export to America,” Bahlil explained.