Govt identifies eight priority rare mineral blocks to secure critical supply

By Cepi Setiadi

The Indonesian government has identified eight priority blocks with significant rare mineral potential as part of its strategy to secure domestic supply of critical minerals and strengthen national industrial resilience.

Head of the Mineral Industry Agency (BIM), Brian Yuliarto, said the identification was based on a comprehensive compilation and analysis of geological and research data. The eight blocks are considered to host primary resources rather than by-product resources, although by-product recovery may support development in several locations.

“Based on the data we have gathered, we have established priority exploration areas for critical minerals. There are eight blocks that we assess to have very large potential, all of which are primary resources,” Brian told Commission XII of the House of Representatives (DPR RI), on Monday (Feb 9).

Four of the priority blocks are located in Bangka Belitung, namely the Toboali, Keposang, Mentikus, and Batubesi blocks, which form a single mineral cluster. In addition to rare earth elements (REEs), these areas also contain other strategic minerals such as tungsten, tantalum, and antimony, which play a vital role in the defense industry.

Brian noted that industrial development in Bangka Belitung is expected to be aligned with the management of by-products from state-owned tin miner PT Timah, particularly monazite, which contains rare earth elements.

The remaining priority blocks include Melawi, Boyan Hulu, Mamuju, and Bombana. According to Brian, BIM is currently conducting intensive research across all eight blocks and will coordinate with the Ministry of Energy and Mineral Resources (ESDM) to issue recommendations on mining business permits (IUPs).

“In line with the President’s directive, rare earth minerals are categorized as strategic commodities. Therefore, we are encouraging that their management be assigned to state-owned enterprises under government control,” he said.

To support policy formulation and industrial planning, BIM is undertaking thematic research involving researchers from multiple universities as well as the National Research and Innovation Agency (BRIN). The agency is also consolidating historical research data from academic institutions and preparing industrial designs, including feasibility studies for rare earth processing and refining facilities.

Read also: New SOE Perminas to manage rare earth minerals

Brian added that the government is currently drafting several supporting policies, particularly related to the governance of mineral by-products, which still lack clear regulatory frameworks. Discussions have also been held with domestic and international industry players that possess experience and technological capabilities in rare earth downstream processing.

Institutionally, BIM operates under Presidential Regulation No. 76 of 2025 and is supported by three deputy units and a secretariat, along with professional staff. Its supervisory board includes the Minister of Defense, the Minister of Energy and Mineral Resources, the Head of the National Intelligence Agency (BIN), and the Commander of the Indonesian National Armed Forces (TNI), reflecting the strategic linkage between rare earth minerals and the defense sector.

As part of implementation, President Prabowo Subianto, through the country’s sovereign wealth fund Danantara investment platform, has established PT Perminas as a state-owned vehicle to develop rare earth separation and refining industries. Perminas is owned 99% by Danantara and 1% by BP BUMN, and is expected to play a key role in converting ore into mixed rare earth products and economically valuable elements.

In the near term, the government plans to launch a pilot rare earth downstreaming technology project at the Mamuju Block. During the research phase, two downstreaming facilities will be built as pilot plants while administrative processes and IUP recommendations to Perminas are finalized.

“The Mamuju pilot is expected to demonstrate Indonesia’s readiness to become a strategic player in the global rare earth industry and to attract international partners to jointly develop downstream industries in the country,” Brian said.

Editing by Reiner Simanjuntak