Jakarta, INTI - PT Timah Tbk has announced that Indonesia will soon begin the groundbreaking of a rare earth metals (REM) processing plant on May 20, 2026. The strategic facility is part of an initiative under the directive of President Prabowo Subianto.
President Director of PT Timah, Restu Widiyantoro, stated that the company will collaborate with Perminas in executing the project. Under this arrangement, Perminas will act as the off-taker and will also be responsible for processing and downstream development of rare earth elements.
“PT Timah is tasked with supplying REE or SHP raw materials. The remaining by-products from tin production will become the main input for Perminas, which will then process them into derivative products,” Restu said during a hearing with Commission XII of the Indonesian House of Representatives on Monday, April 13, 2026.
He added that the partnership is expected to be realized soon with an accelerated commercialization target. The facility is projected to begin operations within a maximum of two years after construction starts.
“This means it will be able to generate products that bring foreign exchange for the country. We cannot yet provide detailed reports as the program only began about 1.5 to 2 months ago and is still under review by PT Timah and Perminas,” he explained.
Collaboration Aimed at Accelerating Downstream Processing and Economic Value
The economic value of tin by-products is expected to increase significantly, potentially dozens of times, if successfully processed into high-value materials used in power generation, solar energy, and electric vehicle components.
“We report that on May 20, the groundbreaking ceremony for the rare earth metals research and production facility will take place. The roadmap is aligned toward that date, which is planned to be inaugurated by the President,” he concluded.
Conclusion
The development of the rare earth metals processing facility marks a strategic step for Indonesia in strengthening its downstream mineral industry and expanding high-value resource utilization. Through collaboration between PT Timah Tbk and Perminas under the direction of President Prabowo Subianto, the initiative is expected to enhance national economic value, support clean energy industries, and accelerate Indonesia’s position in the global critical minerals supply chain.
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