Mineral Resources Must be Optimized to Develop National Industry, Says Energy Official

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 323.Pers/04/SJI/2021

Date: 11 September 2021

Mineral Resources Must be Optimized to Develop National Industry, Says Energy Official

Minerals are strategic natural resources that are vital for the development of national industries, Director General of Mineral and Coal of the Indonesian Ministry of Energy and Mineral Resources (EMR), Ridwan Djamaluddin, has said during a webinar titled "Mineral for Energy (Radioactive/Nuclear-Battery)". According to Ridwan, Law Number 3 of 2020 mandates that the existing mineral and coal resources be maximized and given added value. These minerals include rare-earth elements (REE).

"The Ministry of EMR has the duty to prepare the regulations and policies on REE, from exploration to industry. Moreover, it is necessary to develop industries that are capable of using the domestic REE and minerals. It's about time Indonesia become an independent industrial country," said Ridwan on Friday (10/9) evening.

Ridwan went on to say that during a study by the Ministry of EMR on the associated minerals of tin in 2017, it was discovered that there was ample opportunity to develop tin-based strategic industries such as defense, health, and energy industries.

"Suffice it to say that these minerals will become the raw material for future industries. According to a survey by the Geological Agency, there are at least 28 REE with potential for further exploration. There are also critical and strategic minerals, which means that these minerals are crucial and irreplaceable, and will become the raw material for a variety of industries in the future," Ridwan added.

Ridwan admitted there were no policies on the REE, but the government has formed a team which prepares a draft of the presidential instruction.

"There are not any specific regulations, but the government has formed a team which duties are to develop REE-based industries and prepare a presidential instruction about the acceleration of downstream REE projects," said Ridwan.

In terms of the role of minerals in the electric vehicle battery industry, the Advisor to Minister of EMR for the Acceleration of Industrial Development in the EMR Sector, Agus Tjahajana, explained that Indonesia holds a strategic position in the global battery industry.

"Indonesia has the largest amount of nickel resources at 143 million tonnes and 49 million tonnes of total reserves in 2020. Besides nickel, Indonesia has the 6th largest reserves of aluminium, the 5th largest reserves of copper, and the 6th largest reserves of manganese. Thus, the government needs to prepare regulations or policies to support the 20% use of electric vehicles via numerous policies, incentives and subsidies, and selection of appropriate technologies," continued Agus.

The "Mineral for Energy (Radioactive/Nuclear-Battery)" webinar is the first event in a series of webinars under the theme "Mineral and Coal for Indonesia Powerful, Indonesia Growing (Indonesia Tangguh, Indonesia Tumbuh)" held to commemorate the 76th Anniversary of the Mining and Energy Day which falls on September 28th. The next webinars will be held on September 14th, 17th, and 24th, 2021. (IY)

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