Danantara Indonesia encouraged companies to expedite domestic mineral processing to maximize value from the nation's abundant resources, bolster strategic sectors, and establish Indonesia as a significant participant in global supply chains.
Chief Executive Officer Rosan Roeslani stated that Indonesia should enhance its economic sovereignty by increasing downstream mineral processing rather than depending on raw material exports.
He stated that a significant portion of Indonesia's mineral wealth has historically been taken abroad since local efforts have mainly focused on extraction.
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"Indonesia is blessed with extraordinary mineral wealth, including nickel, bauxite, copper, tin and rare earths, which underpin future technologies such as electric vehicles, semiconductors, defense and clean energy," Rosan says.
"For decades, we have largely exported raw materials and imported finished products at much higher prices," he adds.
To promote that strategy, Danantara organized the Advanced Materials Industry Dialogue: From Minerals to Manufacturing in Jakarta last week.
The event ended with the signing of a memorandum of understanding aimed at speeding up the downstream processing of critical minerals, which involves four state-owned enterprises: PT Mineral Industry Indonesia, PT LEN Industri, PT Krakatau Steel, and PT Pindad.
The collaboration seeks to enhance local supply chains and ensure offtake contracts for essential minerals and advanced materials required by Indonesia's vital industries.
The cohesive ecosystem will provide essential materials for the aerospace, maritime, defense, power, and industrial component industries.
Chief Technology Officer Sigit P. Santosa stated that mastering middle-stream material processing continues to be the crucial element in Indonesia's industrial transformation.
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He stated that increasing high-value manufacturing capacity is crucial for satisfying regional demand and attaining sustainable economies of scale.
"Indonesia's strength lies not only in its mineral resources, but also in its ability to build an advanced materials ecosystem supporting batteries, clean energy, defense, transportation and future technologies," Sigit says.
He stated that the comprehensive development of the advanced materials sector is crucial for enhancing Indonesia's industrial competitiveness.
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"Nickel remains a strategic advantage, but the broader goal is to build a diversified, high-value industrial base with global competitiveness," he says.