Indonesia key to global energy transition: ministry

Jakarta (ANTARA) - Indonesia, as a major producer of critical minerals, plays a strategic role in supporting the success of the global energy transition, according to the Ministry of Energy and Mineral Resources.

"We must ensure that the development of downstream industries goes hand in hand with the sustainability of mineral resources," the ministry's Director of Mineral Business Development, Cecep Mochammad Yasin, said in Jakarta on Wednesday.

He said Indonesia is a leading producer of various critical minerals, including nickel, tin, bauxite, copper, and iron.

He noted that almost all modern clean energy technologies rely on critical minerals, ranging from solar panels, wind turbines, power grids, and energy storage systems to electric vehicles and hydrogen development.

Copper serves as the backbone of electrification, while nickel, cobalt, and lithium are key components in the battery industry, which continues to expand globally.

"Indonesia's position as a major producer of various minerals makes it strategically important in supporting the success of the global energy transition," Cecep said.

He added that Indonesia has strong capital to navigate the transition, supported by the world's largest nickel reserves, which are sufficient for about 31 years based on annual production of 190 million tons.

Indonesia also possesses the world's second-largest tin reserves, estimated to sustain production for 22 years at an annual output of 65,000 tons.

Given its abundant critical mineral resources, Cecep stressed that downstream processing should not stop at the initial processing stage in order to maximize added value.

The ministry continues to promote deeper downstream integration, starting from ore processing into Mixed Hydroxide Precipitate (MHP), nickel matte, precursors, and cathodes before producing end products such as electric vehicles and energy storage systems.

"The longer the value chain built domestically, the greater the economic added value that can be enjoyed by Indonesia and its people," Cecep said.

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Translator: Khaerul Izan, Yashinta Difa

Editor: Anton Santoso

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