Danantara�pushes mineral processing to boost global supply chain

Jakarta (ANTARA) - Danantara Indonesia urged businesses to accelerate domestic mineral processing to capture more value from the country's vast resources, strengthen strategic industries, and position Indonesia as a key player in global supply chains.

Chief Executive Officer Rosan Roeslani said on Wednesday Indonesia must achieve greater economic sovereignty by expanding downstream mineral processing instead of relying on raw material exports.

He said much of the value from Indonesia's mineral wealth has long been captured overseas because domestic activities have largely been limited to extraction.

"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 said.

"For decades, we have largely exported raw materials and imported finished products at much higher prices," he added.

To advance that strategy, Danantara hosted the Advanced Materials Industry Dialogue: From Minerals to Manufacturing in Jakarta last week.

The event concluded with the signing of a memorandum of understanding to accelerate critical minerals downstreaming involving four state-owned companies: PT Mineral Industry Indonesia, PT LEN Industri, PT Krakatau Steel and PT Pindad.

The partnership aims to strengthen domestic supply chains and secure offtake agreements for critical minerals and advanced materials needed by Indonesia's strategic industries.

The integrated ecosystem will supply key materials to the aerospace, maritime, defense, power and industrial component sectors.

Chief Technology Officer Sigit P. Santosa said mastering middle-stream materials processing remains the missing link in Indonesia's industrial transformation.

He said expanding higher-value manufacturing capacity is essential to meet regional demand and achieve 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 said.

He added that integrated development of the advanced materials industry is essential to strengthen Indonesia's industrial competitiveness.

"Nickel remains a strategic advantage, but the broader goal is to build a diversified, high-value industrial base with global competitiveness," he said.

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Translator: Bayu Saputra, Yashinta Difa

Editor: Rahmad Nasution

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