Jakarta, INTI - Executive Director of CORE Indonesia, Muhammad Faisal, emphasized that cracking down on illegal mining is a critical step to safeguard the supply of essential minerals needed to support downstream processing and national industrialization.
Importance of Critical Minerals for Industry
Faisal explained that critical minerals are non-renewable resources that must be managed strategically to generate maximum economic value.
He noted that regulating and securing mineral reserves, while utilizing them for Indonesia’s downstream agenda, remains a key priority to drive industrial growth and improve overall economic welfare.
According to him, countries that can maintain strong reserves of critical minerals will hold a more competitive position in global supply chains, particularly in high-tech manufacturing sectors.
He added that to move up the global value chain, Indonesia must ensure domestic supply stability and prioritize downstream processing to create higher added value.
Global Pressures and Enforcement Efforts
Faisal also warned of potential external pressure pushing Indonesia to open access to raw materials without domestic processing.
He highlighted the risk that foreign parties may seek direct access to critical minerals, which could undermine Indonesia’s downstream policies if raw materials are exported without added value.
To address this, the government, through the Forest Area Control Task Force, has intensified enforcement against illegal mining activities throughout 2025 and early 2026.
During this period, nearly 10,000 hectares of mining land were reclaimed from more than 100 companies suspected of operating without permits in forest areas.
The secured commodities include coal, nickel, gold, quartz sand, and limestone, spread across regions such as Kalimantan, Sulawesi, Sumatra, and North Maluku.
Conclusion
Indonesia’s efforts to curb illegal mining reflect a strategic move to secure critical mineral reserves and strengthen its position in the global value chain. By prioritizing downstream processing and enforcing stricter regulations, the country aims to ensure sustainable resource management while maximizing economic value and supporting long-term industrial growth.
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