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View all search resultsIndonesia's rare earth push unlikely to shake China’s grip
Recent identification of eight prospective rare earth element mining deposits may add non-Chinese supply options for global players, but will not impact market that is heavily centered on Beijing, due to lack of supply and processing ability.
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Heavy equipment is parked on June 7, 2025, at a nickel mining site on Gag Island in Raja Ampat, Southwest Papua. (Antara/Putu Indah Savitri)
I
ndonesia’s recent identification of eight mining blocks with significant potential deposits of rare earth elements marks a strategic move to secure the supply of one of the most critical resources shaping global geopolitical dynamics today.
However, experts note that limited reserves and a lack of local expertise in extracting and refining these minerals constrain the country’s ability to disrupt global markets.
Rare earth elements comprise 17 minerals that are essential to advanced weapons systems, electric vehicle (EV) batteries, wind turbines and semiconductors. Their importance has prompted major economies such as the United States, China, the European Union and Japan to race to build domestic capabilities and secure partnerships with resource-rich nations in order to maintain technological dominance.
Brian Yuliarto, head of the Mineral Industry Agency (BIM), told House of Representatives Commission XII, which oversees energy and mineral resources, on Feb. 9 that the government has identified eight prospective mining blocks for rare earth element deposits across Kalimantan, Sulawesi and the Bangka Belitung Islands.
Brian, who also serves as the government’s Higher Education, Science and Technology Minister, stated that these blocks, to be developed by the new state-owned mining company Perminas, hold “promising” reserves not only of rare earth elements but also of other strategic minerals such as tungsten and antimony.
He also outlined plans to launch two research projects in Mamuju, West Sulawesi, to develop domestic rare earth processing technology.
BIM itself is a new agency established by President Prabowo Subianto in August last year, with a primary focus on processing rare earth elements.
