Coordinating Ministry for Economic Affairs Separates Regulations on Critical and Strategic Minerals

The Coordinating Ministry (“Kemenko”) for Economic Affairs has continued discussions on a draft Regulation of the President (“RPerpres”) specifically governing the management of critical minerals. Herry Permana, Assistant Deputy for Mineral and Coal Development at Kemenko, stated that the current focus of the RPerpres discussions is limited to regulating critical minerals.

“The discussion of the Critical Minerals RPerpres is still ongoing through next week. With the establishment of BIM, what was initially intended to regulate both critical and strategic minerals will now be focused solely on critical minerals,” Herry told Hukumonline.

Herry stated that the establishment of the Mineral Industry Agency (Badan Industri Mineral - “BIM”) will separate the regulatory frameworks for critical minerals and strategic minerals through separate RPerpres. Regarding the Critical Minerals RPerpres being prepared by Kemenko for Economic Affairs, Herry explained that the proposed framework would cover trading and distribution arrangements, the establishment of a management body, and the determination of reference prices, which have to date been administered by the Ministry of Energy and Mineral Resources (“ESDM”). He also disclosed that the discussions include concepts concerning a reference price-setting mechanism and an exchange.

“This means that we are seeking to establish a framework similar to the one under which the Financial Services Authority (“OJK”) regulates exchanges, including reference prices and related matters,” he added.

Meanwhile, regarding the Strategic Minerals RPerpres, Herry stated that the regulation is being prepared by BIM. The RPerpres will subsequently cover the governance of Rare Earth Elements (Logam Tanah Jarang -LTJ”), radioactive minerals, and other minerals related to the defense and security industries.