Since minerals are regarded as strategic national resources that must be managed and utilized effectively, the Ministry of Energy and Mineral Resources of the Republic of Indonesia ("MoEMR") issued MoEMR Decree No. 69 of 2024 on Types of Commodities Classified as Strategic Minerals ("MoEMRD 69/2024") on 1 April 2024. The regulation is issued to significantly support the competitiveness of Indonesia's economy by optimizing downstream processing programs and classifying certain commodities as strategic minerals.
MoEMRD 69/2024 becomes the reference for the government to:
- enact the relevant regulations or policies related to the management and trade of mineral mining and mineral-based industries, including their derivatives and residual processing and/or refining;
- issue business licenses for mineral exploitation business;
- formulate policies related to:
- exploration to increase resources and reserves;
- references for mineral prices;
- prioritizing minerals for domestic needs;
- research and innovation;
- fiscal policies in the mineral mining sector; and/or
- international cooperation.
What are Strategic Mineral Commodities
According to MoEMRD 69/2024, mineral resources have to meet five criteria to be classified as strategic mineral resources commodities:
1. The minerals are the raw materials for strategic industries, which include: Pharmacy, cosmetics, medical devices (health industry);
- Transportation equipment industry (electric vehicle industry);
- The energy generated industry (solar cell industry);
- The capital goods industry;
- Components, auxiliary materials, and industrial services;
- Electronics and Telematics or ICT Industry; and/or
- Base Metal Industry and Non-Metallic Mining Materials (Defense Industry).
2. The minerals potentially control the global market through the dominance of resources and/or reserves;
3. The minerals have significant contributions to the country's revenue;
4. The minerals have significant contributions to the country's foreign exchange reserves; and
5. The minerals are used in massive quantities for strategic industries.
Below is the list of 22 strategic mineral commodities according to MoEMRD 69/2024:
|
No. |
Strategic Mineral |
Types of Mining Commodities |
|
1. |
Aluminum |
Bauxite |
|
2. |
Antimony |
Antimony |
|
3. |
Iron |
Iron Ore, Iron Sand |
|
4. |
Gold |
Gold |
|
5. |
Phosphor |
Phosphate |
|
6. |
Galena |
Galena |
|
7. |
Cobalt |
Cobalt |
|
8. |
Chromium |
Chromite |
|
9. |
Rare Earth Metals |
Rare Earth Metals |
|
10. |
Magnesium |
Magnesium |
|
11. |
Manganese |
Manganese |
|
12. |
Molybdenum |
Molybdenum |
|
13. |
Nickel |
Nickel |
|
14. |
Silver |
Silver |
|
15. |
Platinum |
Platinum (White Gold) |
|
16. |
Zinc |
Zinc |
|
17. |
Silica |
Quartz Sand, Quartzite, Quartz Crystal |
|
18. |
Copper |
Copper |
|
19. |
Tin |
Tin |
|
20. |
Titanium |
Titanium |
|
21. |
Vanadium |
Vanadium |
|
22. |
Zirconium |
Zircon |
Concluding remarks
The 22 types of strategic mineral commodities as determined under MoEMRD 69/2024 shall serve as the benchmark in laying down the required groundwork to take steps towards Indonesia's economic growth through sustainable economic transformation. There will be further implemented regulations down the line to be enacted by the Indonesian Government and relevant ministries to enforce MoEMRD 69/2024, through, among others, trade restrictions or sale pricing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.