Jakarta – Indonesia’s potential as the world’s main producer of critical minerals is at risk of being wasted due to the absence of a clear legal umbrella governing its management, according to business players. They complain about this uncertainty and urge the government to issue comprehensive regulations immediately.
Dilo Seno Widagdo, Director of Portfolio and Business Development at Mineral Industry Indonesia (MIND ID), expressed frustration. “There are 47 strategic and critical minerals in Indonesia. There needs to be clear rules because we have to control and regulate it so that it is optimal,” Dilo said in an official statement, Thursday, October 17.
As one of the state mining companies, MIND ID has managed six types of critical minerals. However, Dilo admits that optimal management can only be realised if the game has clear rules.
“How much production must be regulated, then who must produce because this is related to demand-supply. What is this demand-supply in the end? Price,” he said.
The potential of the global critical minerals market is huge, especially with the rise of renewable energy-based industries such as electric vehicles. With its mineral wealth, Indonesia has a great opportunity to become a significant player in the global market.
“We can regulate prices. So, like nickel, we fixed the price, for example, now the HPM is going up, up, up, up. Yes, the market price also increases,” Dilo explained.
If the government continues to delay issuing clear regulations, Indonesia will experience several losses. First, potential state revenue from the critical mineral mining sector will not be maximised. Second, investors will hesitate to invest due to regulatory uncertainty. Third, Indonesia can potentially lose global market share to other countries more aggressively developing their industries. (Hartatik)
