DPR Pushes for Regulations to Govern the UpstreamDownstream Management of Rare Earth Metals

The Chairman of Commission XII of the House of Representatives (Dewan Perwakilan Rakyat– “ DPR ”), Bambang Patijaya, proposed a special regulation within the Ministry of Energy and Mineral Resources (Energi dan Sumber Daya Mineral– “ ESDM ”) to govern the upstream and downstream of Rare Earth Metal (Logam Tanah Jarang– “ LTJ ”).

According to Bambang, the existing regulations are still general in nature and have not yet become an operational technical guideline. This has resulted in exploration, processing, and export activities being carried out without standardized procedures.

“We need a Ministerial Regulation (“ Permen ”) that governs the entire chain from upstream to downstream, not just definitions at the Government Regulation level,” he said.

Bambang highlighted the lack of clarity in mineral classification, particularly the distinction between pure non-radioactive LTJ and minerals containing uranium or thorium. According to Bambang, Indonesia’s LTJ potential includes both types. However, there are still no official regulations that differentiate the handling standards for non-radioactive LTJ and materials that must be under the supervision of the Nuclear Energy Regulatory Agency (Badan Pengawas Tenaga Nuklir– “ BAPETEN ”).

From a trade governance perspective, Bambang noted that there are still no technical provisions regarding exploration requirements in areas with potential radioactivity, threshold mineral content levels for export, or rules on mineral traceability from the mine to the port. He proposed a dedicated Ministerial Regulation covering five aspects: the classification of LTJ based on scientific thresholds, SOP for separating uranium/thorium, tiered licensing, inter-agency audits, and downstreaming incentives to attract investment.