The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, emphasized that the use of critical minerals must continue through a downstream process and not be sold in the form of raw materials.
Jakarta, MINE – The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, emphasized that the use of critical minerals must continue through a downstream process and not be sold in the form of raw materials.
This was conveyed after a bilateral meeting between Indonesian President Prabowo Subianto and United States (US) President Donald Trump in Washington, DC., in Agreement on Reciprocal Trade (ART) on Thursday (19/2).
“For critical minerals, we have agreed to facilitate entrepreneurs in the US to make investments, while still respecting the rules that apply in our country. We will also give priority to support and facilitate execution. This includes investment,” explained Bahlil, quoted in an official statement, Tuesday (24/2).
Bahlil emphasized that there was no change in policy regarding raw mineral exports, because the Indonesian government remains committed to carrying out a national downstream program and there are no plans to open the tap for exports of raw goods.
“So let’s say they build a smelter in Indonesia for nickel, we will encourage it, we will give it as much space as possible, the same as other countries. So don’t take this to mean that we will open up exports of raw goods. What is meant here is that after refining them, the results can be exported. Let this be clear, so that there are no misinterpretations,” stressed Bahlil.
Furthermore, he gave an example of cooperation that had taken place previously, such as the investment made by Freeport Indonesia which built a copper smelter facility with an investment value of almost USD 4 billion and became one of the largest in the world. According to him, a similar pattern can be applied to the development of other critical minerals such as nickel, rare earth metals and gold.
In its implementation, Bahlil said the government offered two investment schemes for US companies. The first is by offering companies from the US directly to carry out exploration, and the second can be through partnerships or joint venture (JV) with Indonesian State-Owned Enterprises (BUMN).
“Once they have produced and built a smelter or downstream, it is their right to export to America,” he continued.
However, Bahlil revealed that Indonesia is also opening up space for other countries to collaborate in developing critical minerals.
According to him, government policy is not exclusive and is not only aimed at one particular country. Indonesia remains consistent in implementing the principles of open, fair and mutually beneficial cooperation with all global strategic partners.
“We also provide the same space as other countries, so equity treatment “Just (equal treatment),” said Bahlil.
Source: tambang.co.id
