ESDM Regulates Development Plan for Rare Earth Metals

The Director of Mineral and Coal Program Supervision at the Ministry of Energy and Mineral Resources (“ ESDM ”), Julian Ambassadur, outlined seven strategic measures currently being prepared to accelerate the development of Rare Earth Metals (Logam Tanah Jarang– “ LTJ ”) industry in Indonesia.

“There are around seven strategic measures that we may propose as improvements in developing or promoting the development of LTJ,” Julian explained.

One of the key policies being formulated is the provision of incentives and investment facilitation. According to Julian, both fiscal and non-fiscal incentives are needed to address the high technological costs of LTJ separation and purification, which continue to hinder investor entry.

In addition, the government is preparing a multi-element testing policy from the exploration stage through refining to ensure comprehensive identification of mineral characteristics. Optimization of the utilization of processing residues (Sisa Hasil Pengolahan– “ SHP ”) or tailings from tin, nickel, and bauxite also remains a priority to secure the potential of LTJ as by-product minerals. The government is further encouraging the establishment of an integrated supply chain through the concept of total downstreaming, in line with the designation of LTJ as a national priority industry.

The development of urban mining from discarded electronic goods and the strengthening of technology research for LTJ separation and purification likewise form part of the national strategy to build a sustainable LTJ industrial ecosystem.