- 22 May 2026
JAKARTA - Efforts to accelerate the downstream processing of Indonesia's strategic minerals continue to be strengthened in line with the government's commitment to building industrial independence and reinforcing Indonesia's position in the global critical mineral supply chain, including through the strategic collaboration between PT TIMAH and PT Perusahaan Mineral Nasional in developing the downstreaming of national strategic minerals.
One concrete step was taken through the signing of a Conditional Framework Agreement between PT TIMAH and PT Perusahaan Mineral Nasional (Perminas) for the development of tin slag and rare-earth element (REE) processing in the Bangka Belitung Islands Province.
The collaboration is outlined in a conditional cooperation framework titled the Sovereign Strategic Mineral Cooperation Framework for Bangka Tin Slag, Monazite & REE Processing.
The agreement was signed by the President Director of PT Perusahaan Mineral Nasional, Gilarsi Wahju Setijono, and President Director of PT TIMAH, Restu Widiyantoro, witnessed by the President Director of MIND ID, Maroef Sjamsoeddin, Chief Technology Officer of Danantara, Sigit Puji Santosa, and the Minister of Higher Education, Science, and Technology, as well as Head of the Mineral Industry Agency (BIM), Brian Yuliarto, at the State-Owned Enterprises Regulatory Agency Building recently.
The collaboration forms part of efforts to support the government's downstreaming agenda while strengthening national mineral sovereignty through optimizing the utilization of resources that have not yet been managed to their full potential.
President Director of PT Perusahaan Mineral Nasional, Gilarsi Wahju Setijono, stated that the cooperation agreement with PT TIMAH marks an important milestone in building management of national strategic minerals, particularly in processing tin slag and rare earth elements.
According to him, the process leading to the cooperation involved intensive discussions to formulate the collaboration framework that will be implemented by both companies.
"Today is truly encouraging because after a long journey, we finally agreed on a collaboration between PT TIMAH and PERMINAS. This is not merely discourse, but a concrete step toward beginning a new chapter in building Indonesia's mineral sovereignty," he said.
He explained that the cooperation is intended to become a long-term strategic partnership in the development of tin slag and rare earth mineral processing.
During the process, both companies also studied various development aspects, including strengthening processing technology to accelerate the downstreaming of national strategic minerals.
"This processing technology is highly strategic and has long been tightly controlled by other countries. Therefore, we are striving to bring in the right partners so that the processing development can be accelerated," he said.
Gilarsi added that the biggest challenges in accelerating downstreaming efforts today lie not only in technical aspects, but also in regulations and licensing so that the processing activities can be realized promptly.
Meanwhile, the President Director of PT TIMAH, Restu Widiyantoro, expressed appreciation for the government's support in opening opportunities for the company to expand its role in developing strategic mineral downstreaming.
According to him, for decades, PT TIMAH has focused on processing tin ore from upstream to downstream for export purposes. However, through this strategic collaboration, the company now has the opportunity to create higher added value through strategic mineral management.
"For years, PT TIMAH has only focused on managing tin ore from upstream to downstream for export. With this cooperation, we now have the opportunity to move to the next level through downstream development and strategic mineral management," he said.
He revealed that slag, which had long been considered merely a production byproduct, actually holds significant economic and strategic potential. Through the cooperation in slag and rare earth mineral processing, the material is expected to generate added value for both the company and the country.
President Director of MIND ID, Maroef Sjamsoeddin, stated that the strategic cooperation is part of efforts to optimize the nation's natural resources for the interests of the country and its people.
"We want to manage the natural wealth owned by this nation for one main purpose, namely national interests and the welfare of the people and the country," he said.
According to him, the collaboration is expected not to stop at the discussion stage, but to produce concrete and sustainable actions in supporting the downstreaming of national strategic minerals.
Several development priorities that will be strengthened include technology validation, preparation of technical and commercial studies, strengthening licensing aspects, and occupational safety.
A similar view was expressed by Chief Technology Officer of Danantara, Sigit Puji Santosa, who considered the rare earth elements sector to have long been an overlooked industry because it has not yet provided optimal added value for the country.
"We want to encourage industries that have long been overlooked. These minerals actually exist around us, but they have not yet been able to provide maximum added value for the nation," he said.
According to him, Danantara is ready to facilitate various project acceleration needs, including licensing support and resolving obstacles in strategic mineral downstream development.
He also emphasized the importance of safeguarding identified mineral reserves so they can be utilized optimally for the nation's long-term interests.
"So far, much of the REE potential has been lost without being utilized optimally, even though its strategic value is enormous for the future of the national industry," he said.
Meanwhile, Minister of Higher Education, Science, and Technology as well as Head of BIM, Brian Yuliarto, stated that the development of REE and strategic mineral downstreaming is an important step in strengthening national industrialization.
"The President has emphasized that Indonesia no longer wants to export natural resources in raw form. Therefore, downstreaming is an important step to elevate our nation's standing," he said.
According to Brian, the development of strategic mineral industries is aimed not only at improving the national economy, but also at building national confidence so Indonesia can stand alongside developed countries in the global critical mineral industry.
"This is not merely about economics, but also about national pride so that Indonesia can become a producer of high-value strategic minerals and join the ranks of advanced countries in the critical mineral sector," he said. (*)