US Granted Access to Critical Minerals, BKPM: Downstreaming Remains Mandatory

Thu, 26 Feb 2026, 18:15 WIB | By | Source: BERITASATU.COM | Economy

The government has affirmed that the trade agreement between Indonesia and the United States does not change the basic principles of national mineral management. Although, foreign investors are now permitted to explore critical minerals.

Access for US investors to critical minerals still requires investment and processing within the country, without allowing the export of raw materials.

The Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, said that the cooperation within the framework of the Agreement on Reciprocal Trade (ART) does not mean a relaxation of downstream policy. According to him, access is still granted as long as it follows the legal framework in force in Indonesia.

“The point is that the US request for US business actors to be given access to our mineral sector, including rare earth, is actually not a problem,” said Todotua after the socialization of PP 28/2025 in Jakarta, Thursday (26/2/2026).

Todotua emphasized that the ban on exporting raw materials still applies. Every foreign company that wants to enter the mineral sector is required to build processing facilities and invest in Indonesia.

“As long as that is done, the rules are clear. If they want to enter, they must invest in processing. Because our country, by law, does not allow raw materials to be exported,” he said.

According to Todotua, this approach ensures that trade cooperation takes place equally and does not harm national interests. The government also does not provide special treatment to specific countries. “That’s just normal business to business,” he said.

He explained that the principle applied to the United States also applies to other partners, including European and Asian countries. As long as investors are committed to downstreaming and investment, access to the mineral sector remains open.

“We are ready. They asked for access, it’s okay. As long as they invest in downstreaming and processing, we will give access. It’s equal trade,” said Todotua.

Furthermore, Todotua said that the downstreaming policy has become the foundation of the national investment strategy. The government is targeting investment of around IDR 13,000 trillion over the next five years, focusing on sectors based on the processing of natural resources.

“We already have a big plan regarding investment. There are investment targets that must be achieved each year and priority sectors that are encouraged, especially those related to the downstream concept,” he said.

According to him, downstreaming not only increases added value, but also strengthens the domestic industrial structure and reduces dependence on exports of raw commodities. Therefore, every trade and investment agreement is aimed at strengthening the production chain in the country.

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