United States and India Ready to Invest in Indonesia's Mining Sector
Indonesia is emerging as a target destination for investment from the United States and India to develop critical minerals. Indonesian mineral resources are regarded as a valuable prize sought globally.
Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung stated that India will be involved in developing critical minerals in Indonesia. This was conveyed following a meeting with Sandeep Poundrik, Secretary of the Ministry of Steel, Government of India, some time ago.
This initiative aims to strengthen national energy security and create opportunities for sustainable investment. The investment is expected to provide long-term economic benefits.
The meeting discussed the drafting of a memorandum of understanding (MoU) as an umbrella for cooperation. The MoU will be signed at ministerial level once both countries reach an agreement.
According to Yuliot, the Indian government will encourage Indian companies to invest in Indonesia’s metal industry sector. This cooperation includes developing the metal industry into equipment and capital goods that can be jointly produced.
Both countries will also explore cooperation in the development of capital goods through more efficient research and innovation. Currently, India is preparing a draft MoU for consultation with the Ministry of Foreign Affairs regarding the cooperation framework to be discussed and implemented.
Indonesia has also established critical mineral trading cooperation with the United States. This agreement aligns with a reciprocal trade agreement (Agreements on Reciprocal Trade/ART) signed by President Prabowo Subianto and US President Donald Trump on Thursday, 19 February in Washington D.C.
Energy and Mineral Resources Minister Bahlil Lahadalia emphasised that this cooperation is part of a national strategy to ensure critical minerals are not traded in raw form. The government wants foreign investment to focus on building domestic processing industries, in accordance with the national downstream industrialisation policy.
“For critical minerals, we have agreed to facilitate US entrepreneurs to make investments, whilst respecting the regulations applicable in our country,” Bahlil said in a written statement on Saturday, 21 February 2026.
Bahlil emphasised there is no change in policy regarding raw mineral exports. The government is committed to implementing the national downstream industrialisation programme and has no plans to open the tap on raw material exports.
“So, let’s say they build a smelter in Indonesia for nickel, we will encourage it, we will provide the broadest possible space, the same also with other countries. So, do not interpret this as us opening raw material exports. What is meant here is that after they refine it, then the results can be exported. Let me be clear here, so there is no misinterpretation,” he stressed.
An example of Indonesia-US critical mineral cooperation already underway is Freeport Indonesia’s investment in building a copper smelter facility worth nearly US$4 billion.
Two Cooperation Models
The government is offering two investment schemes for US companies. First, offering direct exploration to US companies. Second, through partnerships or joint ventures (JV) with Indonesian state-owned enterprises (SOEs).
“Once they are producing and building a smelter or processing facility, then they have the right to export to America,” he added.
Indonesia adheres to the principle of active free economics and provides equal investment opportunities to all countries. This policy is not exclusive and remains consistent in implementing the principle of cooperation that is open, fair, and mutually beneficial with all global strategic partners.
“We provide space equally with other countries too, so just equitable treatment,” Bahlil concluded.