Video: Copying China, This Is Indonesia's Key to Unlocking Rare Earth Potential

The Chairman of the Indonesia Mining Institute, Irwancy Arif, has emphasised the importance of managing critical minerals and implementing strategic policies for rare earth elements and nickel to strengthen the nation’s mineral ecosystem.

Regarding the management of rare earth elements specifically, Indonesia can look to China as a model. China is the world’s largest producer, holding 50% of global reserves and controlling both the supply chain and processing capabilities. Similarly, Australia maintains the best production efficiency outside of China, while the United States stands as the world’s second-largest producer.

Indonesia possesses significant resources, with 136.2 million tonnes in ore form and 118,000 tonnes in metal form; however, the reserves currently ready for mining remain very small. Therefore, it is necessary to develop exploration and downstreaming processes. Furthermore, the formation of two specialised bodies—the Mineral Industry Agency (BIM) and the National Mineral Company (Perminas)—is required for Indonesia to successfully develop its rare earth element potential.