Indonesia Opens Access to Investment in Critical Mineral Sector to United States

Minister of Energy and Mineral Resources Bahlil Lahadalia delivers a press statement in Washington D.C., Friday (02/20).

As part of bilateral economic cooperation, the Government of Indonesia is opening wider opportunities for United States companies to develop critical minerals.

Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the entire implementation of the investment must proceed in accordance with national regulations, support the downstreaming agenda, and increase domestic added value.

“Regarding critical minerals, particularly nickel, rare earth elements, and other minerals, we have agreed to facilitate investment for businesspeople in the United States while still complying with applicable regulations in our country. However, we will give priority to supporting and facilitating the execution, including the investment,” he said in a press statement in the U.S. capital of Washington D.C., Friday (02/20).

According to Bahlil, the Government provides equal investment opportunities to all countries, including the United States, as long as they support the downstreaming agenda and comply with national regulations.

“We give the same opportunities to all countries, including the United States and other countries that will invest in Indonesia, especially in critical minerals. And it has already happened even before this agreement. Take Freeport, for example,” he said, adding that it does not mean allowing exports of raw materials.

“Do not interpret it as if we are allowing exports of raw materials, no, what we mean here is that after the [mineral] refinement, the yield can be exported,” he said.

Bahlil further said that the Government has also mapped several prospective mining areas to offer to investors, in order to maintain strategic economic relations between the two countries.

“I also explained that in the context of acquiring existing mining areas, we will offer them to companies that want to invest, and we will facilitate their process. I have already mapped prospective locations because we also have to build and maintain this already strong relation,” he said.

The Government is set to facilitate the acceleration of investment implementation to create jobs and increase domestic added value. This measure is aimed at strengthening Indonesia’s position in the global critical mineral supply chain, which is becoming increasingly strategic for the future energy industry. (BPMI of Presidential Secretariat) (DH/MMB)