Jakarta, INTI - Indonesia’s mining industry holding company MIND ID is pushing for the country’s mineral resources to move beyond a model centered on extraction and commodity sales, positioning mining as a foundation for industrialization that can generate greater value and strengthen the national economy.
Selly Adriatika, Division Head of Institutional Relations at MIND ID, said the government has tasked the company with ensuring that Indonesia’s mineral wealth delivers greater economic benefits through the development of domestic industries.
“The government has tasked MIND ID with ensuring that Indonesia’s mineral wealth does not stop at extraction. These natural resources must become the foundation of industrialization capable of strengthening the national economic structure and enhancing Indonesia’s economic sovereignty,” Selly said.
The transformation is being pursued through domestic mineral processing, downstream development, the expansion of downstream industries, integration of strategic mineral value chains, and the production of industrial materials and products to meet domestic demand.
Indonesia Holds Around 42% of Global Nickel Reserves
Data from the Geological Agency of Indonesia shows that Indonesia holds approximately 42% of the world’s nickel reserves, while also maintaining significant reserves of tin, bauxite, gold, copper, and coal.
According to Selly, abundant natural resources do not automatically translate into optimal economic benefits if resource management remains focused on commodity exports and exposed to fluctuations in global market prices.
MIND ID is therefore directing the development of the mining sector toward closer integration with mineral processing, manufacturing, and other downstream economic activities.
This approach is particularly important because minerals and coal are non-renewable resources. Their development therefore needs to generate greater and more sustainable economic value over the long term.
These benefits include attracting investment, expanding processing industries, strengthening technological capabilities, and stimulating broader economic activity across related sectors.
International Partnerships Support Mineral Downstreaming
Selly said developing an integrated mineral value chain requires strategic partnerships with international industry players and investors, particularly to accelerate technology transfer, strengthen domestic technological capabilities, and expand market access for Indonesian downstream products.
MIND ID is also working to integrate various strategic mineral value chains so that mining activities are not isolated from the wider economy, but instead become connected to manufacturing and downstream industries.
The strategy is intended to create new sources of economic growth while reducing the mining sector’s dependence on commodity exports and global raw material price fluctuations.
MIND ID Strengthens State Control Over Strategic Minerals
MIND ID is also prioritizing stronger state control over strategic mineral resources as part of Indonesia’s national mining policy, in line with the mandate of Article 33 of the 1945 Constitution.
Greater control over strategic mineral and coal reserves, including assets previously controlled by foreign entities, is intended to ensure that Indonesia captures a larger share of the economic value generated from its natural resources.
“Our goal goes beyond simply managing mining operations. What we seek is to optimize Indonesia’s entire natural resource wealth to strengthen economic sovereignty and deliver the greatest possible benefits for the country,” Selly said.
Conclusion
MIND ID’s strategy reflects Indonesia’s broader ambition to transform its mining sector from a commodity-based industry into a stronger foundation for industrial development. By expanding domestic processing, accelerating downstream industries, integrating strategic mineral value chains, and strengthening technological capabilities, Indonesia can capture greater value from its natural resources. This approach is expected to support new sources of economic growth, strengthen industrial competitiveness, reduce reliance on raw commodity exports, and reinforce the country’s long-term economic sovereignty.
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